Starbucks Net Revenues Increase 13% to $3.7 Billion

26 July 2013 --- Starbucks Corporation has reported financial results for its 13-week fiscal third quarter and 39-week fiscal year to date ended June 30, 2013. Consolidated net revenues were $3.7 billion in Q3 FY13, an increase of 13% over Q3 FY12. The increase was primarily driven by an 8% increase in global comparable store sales and incremental revenues from 1,558 net new stores over the past 12 months.

Consolidated operating income increased 25% to $615.2 million, compared to $491.6 million for the same period a year ago. Operating margin of 16.4% expanded 150 basis points compared to the prior year quarter, primarily driven by sales leverage and lower coffee costs.

Consolidated operating income increased 25% to $615.2 million, with consolidated operating margin expanded 150 basis points to 16.4%. The company opened 341 net new stores in Q3 and now operates 19,209 stores globally.

“Starbucks Q3 results represent the best across-the-board third-quarter performance in our 42-year history,” said Howard Schultz, chairman, president and ceo. "Our more than 19,000 store global footprint, our fast-growing CPG presence and our best-in-class digital, card, loyalty and mobile capabilities are creating a 'flywheel' effect elevating the relevancy of all things Starbucks, and driving profitability.”

“Our powerful Q3 results reflect the outstanding success of our growth platforms both in the U.S. and globally, with all regions delivering an acceleration in comparable store sales and operating margin versus Q2,” said Troy Alstead, chief financial officer. “Our ability to grow income at a pace that exceeds revenue growth clearly demonstrates the strategic synergies we generate across our global footprint, which combined with the diversity of our portfolio, enables consistent delivery of excellent results. Looking forward to FY14 and beyond, I am as confident as ever in our ability to continue to deliver strong revenue and earnings growth.”

The company provides Q4 fiscal 2013 targets as follows:
•Consolidated operating margin improvement of approximately 100 basis points over Q4 FY12
•Earnings per share in the range of $0.59 to $0.60, which includes a $0.03 gain on the Q4 sale of Starbucks equity in Argentina and Chile
•Full year earnings per share in the range of $2.22 to $2.23

The company introduces fiscal 2014 targets as follows:
•Revenue growth of approximately 10% to 13%
•Mid single digit comparable store sales growth
•An additional 1,400 net new stores: ?Americas: approximately 600