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Starbucks reports record Q2 fiscal results

Starbucks reported financial results on 26 April for its 13-week fiscal second quarter that ended 1 April, 2018. In its Q2 highlights, Starbucks reported global comparable store sales increased 2 per cent, driven by a 3 per cent increase in average spend.

Sales in stores in the Americas, including the United States, 2 per cent and China store sales increased 4 per cent.

Consolidated net revenues were $6.0 billion, up 14 per cent from a year earlier. These included a 3 per cent net benefit from consolidation of the recently acquired East China business and other streamline-driven activities, including Teavana mall store closures, the Tazo divestiture, and the conversion of certain international retail operations from company-owned to licensed models.

GAAP operating margin, inclusive of restructuring and impairment charges, declined to 12.8 per cent, down 490 basis points from a year earlier.

Non-GAAP operating margin of 16.2 per cent declined 170 basis points from the year earlier.

GAAP earnings per share were $0.47, up 4 per cent from the previous year.

The Starbucks Rewards loyalty program added 1.6 million active members in the US, up 12 per cent from the previous year, with the member spend increasing to 39 per cent of US company-operated sales. Mobile Order and Pay represented 12 per cent of US company-operated transactions.

The company opened 468 new Starbucks stores in Q2 and now operates 28,209 stores across 76 markets. uring the quarter, the company also closed 298 Teavana stores.

Starbucks returned $2.0 billion to shareholders in the quarter through a combination of dividends and share repurchase.

“Starbucks Q2 of fiscal 2018 represented another quarter of record financial results, highlighted by accelerating momentum across our Americas business particularly in the US, continued strong performance in China and our strongest comp growth in Japan in five quarters,” said Kevin Johnson, President and CEO. “At the same time we made measurable progress against each of the strategic initiatives that position Starbucks to continue delivering best-in-class operating and financial results long into the future.”

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