Starbucks sees profits climb

Comment on this story


IOL pic jan25 starbucks coffee cup

Reuters

Starbucks says its profit rose 13 percent in its fiscal first quarter.

New York - The Seattle-based coffee chain Starbucks said its profit rose 13 percent in its fiscal first quarter, which was in line with Wall Street expectations. Results were boosted by a six-percent increase in global sales at cafes open at least a year, a key metric of health.

The company reported increases in In the flagship Americas region, Starbucks said the figure rose seven percent as traffic and spending per visit increased with the help of holiday drinks such as the Pumpkin Spice Latte. In the China and Asia Pacific region, the figure rose 11 percent driven primarily by an uptick in traffic.

But in Europe, a persistent weak spot the company, the figure fell 1 percent. Starbucks executives have said they're working to turnaround the chain's performance in the region, in part by closing underperforming stores and improving customer service. Although traffic increased in Europe during the period, the amount people spent per visit declined.

“A lot of people were trading down it appears,” said Troy Alstead, the company's chief financial officer, noting that fewer purchases included food.

For October-to-December period, Starbucks earned $432.2-million, or 57 cents per share. That's compared with $382.1-million, or 50 cents per share, in the year-ago period. Revenue rose 11 percent to $3.8-billion. Analysts expected a profit of 57 cents per share on revenue of $3.85-billion, according to FactSet.

The company affirmed its outlook for the year, with earnings expected to be between $2.096 and $2.15 per share, representing growth of 15 to 20 percent from the previous year. - Sapa-AP


sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

     

Join us on

IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks