Starbucks Corporation has reported financial results for its 13-week fiscal first quarter ended December 29, 2013. Consolidated net revenues increased 12 percent to $4.2 billion in the first quarter of fiscal 2014, an increase of 12 percent over Q1 FY13, driven primarily by 5 percent growth in global comparable store sales and incremental revenues from 1,564 net new Starbucks store openings over the past 12 months.
Starbucks consolidated operating income increased 29 percent to $814 million in the first quarter of 2014 compared to $630.6 million for the same period a year ago. The company opened 417 net new stores globally – bringing the total store count to 20,184 – including the 4,000th store in CAP and the 2,000th store in EMEA.
Commenting on the earnings, Howard Schultz, Chairman, President and CEO, Starbucks Coffee Company, said: “Holiday 2013 was the first in which many traditional brick and mortar retailers experienced in-store foot traffic give way to online shopping in a major way. As our solid traffic growth and record Q1 results demonstrate, Starbucks unique combination of physical and digital assets positions us as one of the very few consumer brands with a national and global footprint to benefit from the seismic shift underway.”
Net revenue for the Americas segment were $3.1 billion in Q1 FY14, an increase of 8 percent over Q1 FY13. The increase was driven by a 5 percent increase in comparable store sales and incremental revenues from 735 net new store openings over the past 12 months.
For the EMEA segment, the net revenue stood at $339.5 million in Q1 FY14, an increase of 11 percent over Q1 FY13. The increase was primarily due to incremental revenues from 157 net new store openings over the past 12 months and a 5 percent increase in comparable store sales.
China/Asia Pacific segment recorded net revenue of $266.9 million in Q1 FY14, an increase of 25 percent over Q1 FY13. The increase was driven by incremental revenues from 672 net new store openings over the past 12 months. An 8 percent increase in comparable store sales also contributed to the net revenue growth.
The company targets for the fiscal 2014 include a revenue growth of 10 percent or greater, global comparable store sales growth in the mid single digits, opening of approximately 1,500 net new stores; approximately 600 in Americas, approximately 150 in EMEA, and approximately 750 in CAP.
Starbucks continued to explore unique concepts, such as its first Starbucks store on a train, opened in November in partnership with SBB in Switzerland, while also opening its first store in Monaco in early December. The company now operates in 63 countries worldwide. It also opened its second Teavana Fine Teas + Tea Bar in early December at Seattle’s University Village following the October opening of the first concept store in New York City. Starbucks Cards were introduced at select locations in Mainland China in early January, marking an expansion of the Starbucks Card program which was launched 12 years ago and is now available in 28 countries worldwide.
Established in 1971, Starbucks Coffee Company is the premier roaster and retailer of specialty coffee in the world.
