Starbucks Corporation (SBUX) CEO Howard Schultz Says Reimagined In-Store Experience Resonated Powerfully
Starbucks Corporation (NASDAQ:SBUX) Chairman, President and CEO, Howard Schultz, disclosed that the company’s reimagined in-store holiday experience resonated powerfully with customers during the holiday season. As a result, the company was able to witness 2% growth in international traffic besides providing tremendous excitement to its customers.
The company revealed that robust performance during the holiday season drove Starbucks Corporation (NASDAQ:SBUX) to record 5% growth in global comparable. Comparable store customer transactions recorded an uptick of close to million in America and 12 million globally during the first quarter. The company’s holiday experience included a greatly expanded collection of Starbucks Cards, new holiday merchandise offerings, beverage and food. Aside from these, there was a prospect of winning ‘Starbucks for Life’.
The coffee maker said that every segment contributed to its results during the December quarter as a result of an improved American traffic growth and record profitability in EMEA apart from an 8% comps in Canada/Asia Pacific or CAP. The company also expressed its confidence of meeting the financial targets for the fiscal year 2015 driven by growth through innovation and operational excellence besides unique customer connection.
Starbucks Corporation (NASDAQ:SBUX) said that net income jumped 82% to $983.1 million from $540.7 million while earnings climbed 83% to $1.30 a share from 71 cents a share in the year-ago quarter. On an adjusted basis, the company would have earned 80 cents a share compared to 69 cents a share in the prior year quarter indicating a growth of nearly 16%.
The company’s top line advanced 13.3% to $4.8 billion from $4.24 billion in the previous year quarter. Both EPS and revenue were in line with the Wall Street analysts’ expectations. Comparable store sales in Canada/Asia Pacific grew 8%, where it was 5% in the United States and 4% in EMEA.
The coffee maker’s adjusted operating margin improved 80 basis points 19.5% though GAAP operating margin decreased ten basis points.
Starbucks Corporation (NASDAQ:SBUX) reaffirmed its fiscal 2015 revenue uptick between 16% and 18%. Street analysts’ predict the company to deliver 15.4% growth in revenue. Similarly, the company expects to earn $3.09 – $3.13 a share for the same period and 64 – 65 cents a share for the second quarter.
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