On Tuesday, 2nd May – Starbucks reported its quarterly earning which exceeded analysts estimates, it was mainly boosted by increased international sales.
According to a survey of analysts by Refinitiv, here is a comparison between Starbucks' reported figures and the expectations of Wall Street:
– Adjusted earnings per share: 74 cents, exceeding the expected 65 cents.
– Revenue: $8.72 billion, surpassing the expected $8.4 billion.
In the fiscal second quarter, the coffee giant disclosed a net income of $908.3 million, equivalent to 79 cents per share, showing growth from $674.5 million, or 58 cents per share, recorded in the previous year.
Net sales experienced a 14.2% increase, reaching $8.72 billion. During the quarter, the company's same-store sales surged by 11%, surpassing Street Account estimates of 7.1%.
Starbucks observed a positive change in its same-store sales in China, which is its second-largest market. This marks the first increase since Starbucks' fiscal third quarter in 2021. The return of customers to Starbucks cafes in China was attributed to the reversal of Beijing's zero-Covid policy.
Same-store sales in the United States witnessed a significant surge of 12%, driven by a notable 6% increase in customer traffic.
During the quarter ending on April 2, the company reported a 15% growth in active members of its U.S. loyalty program compared to the same period last year, reaching a total of 30.8 million members. Additionally, outside of the United States, the coffee chain observed a 7% increase in same-store sales.
Starbucks restated its fiscal-year forecast, anticipating a revenue growth range of 10% to 12% and adjusted earnings-per-share growth towards the lower end of 15% to 20%. Additionally, during the quarter, Starbucks inaugurated a total of 464 new locations (after accounting for closures), contributing to its expansion efforts.
“This is remarkable on any level, but specifically given the seasonality pressures we typically experience in [the second quarter],” said finance chief Rachel Ruggeri.
