Starbucks Corp. posts $540.7M profit in Q1; up by 25 percent

Nathan Andrada – Fourth Estate Cooperative Contributor

Seattle, WA, United States (4E) – Starbucks Corp. said it saw an increase in revenue and same-store sales in its fiscal first quarter, though it was affected by more consumers shopping online during the holidays.

Profit was 71 cents per share, or $540.7mn, in the fiscal first quarter. It was higher by 25 percent compared with the same period from a year earlier, when it posted a profit of 57 cents per share, or $432.2mn.

For the quarter ended Dec. 29, the coffee retailer’s revenue of $4.24bn, which is 12 percent higher compared with the $3.79bn in sales from the previous year, although short of analysts’ estimates.

Starbucks also increased its forecast to per-share earnings range of $2.59 to $2.67 for the full fiscal year, compared with its previous estimate of $2.55 to $2.65 per share released in October.

Worldwide same-store sales, or sales at stores open at least 12 months, climbed 5 percent, lower than the 5.9 percent growth estimated by analysts surveyed by Consensus Metrix, while net revenue surged 12 percent to $4.24bn, slightly lower than analysts’ forecast of $4.29bn.

In an interview, Starbucks Chief Financial Officer Troy Alstead said that fewer people showed up in malls and downtown shopping that resulted to lesser traffic in their shops.

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