Starbucks Reports Record Second Quarter Fiscal 2013 Results

Fiscal Second Quarter 2013 highlights were as follows:

 

Total net revenues increased 11% to $3.6 billion 

Global comparable store sales grew 6%, driven by a 4% increase in traffic and a 2% increase in average ticket, marking the 13th consecutive quarter of global comp growth greater than 5% 

Operating margin expanded 180 basis points to a Q2 record 15.3% 

Consolidated operating income grew 26% to $544 million 

Record Q2 EPS of $0.51 per share included a $0.03 non-routine gain on the sale of the company's equity in the joint venture that operates Starbucks stores in Mexico; excluding this gain, EPS grew 20% 

Dollars loaded on Starbucks Cards through both new card activations and reloads increased 32% over Q2 FY12 

Starbucks added 590 net new stores globally, including 337 Teavana stores 

The company has raised its full year earnings per share target range to $2.12 to $2.18 from the previous target range of $2.06 to $2.15. 

 

"Starbucks record operating performance in Q2 continues to demonstrate the underlying strength and resilience of our expanding global business, and the increasing relevance of the Starbucks brand to consumers all around the world,” said Howard Schultz, chairman, president and chief executive officer. “Innovation and an enhanced customer experience drove strong comp sales and revenue growth, while a laser focus on improving efficiency and controlling costs enabled us to deliver record margins and earnings. Starbucks has never been better positioned to achieve the aspirational goal we have set of becoming one of the world's most respected, admired and enduring brands.”

 

“Record second quarter results once again illustrate the power of the Starbucks business and brand,” commented Troy Alstead, chief financial officer. “Continued strength in our US operations, despite ongoing uncertainty in the macro environment, has fueled our performance and allows us to pursue long term strategic initiatives across our segments. Given our performance in the first half of the year and the considerable momentum in the business as we enter the second-half, we are raising our full year earnings growth target.”