Starbucks Reports Record Second Quarter

Starbucks Corp. (Seattle) reported total net revenues increased 10 percent to $2.8 billion for its fiscal second quarter ended April 3, 2011. Comparable store sales grew 7 percent, driven by a 6 percent increase in traffic and a 1 percent increase in average ticket. By market, comparable store sales were up 7 percent in the U.S. and 4 percent internationally.

“Starbucks record fiscal second quarter results reflect solid performance and execution across all of our businesses,” says Howard Schultz, chairman, president and ceo. “Our sales, traffic and customer trends all point to the expanding power of the Starbucks business and brand.”

Starbucks’ customer traffic grew in both its U.S. and International segments and the company says it saw improved profitability throughout the retail store business as operational improvements combined with revenue growth drove strong sales leverage, according to cfo Troy Alstead.

“Our results for the quarter were even more significant when viewed in the context of the investments we made during the period and the charges related to Seattle’s Best Coffee store closures in Borders bookstores,” he says. “We remain well positioned to deliver on our previously communicated fiscal 2011 outlook of 15 to 20 percent EPS growth compared to last year’s results despite dramatically higher commodity costs.”