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Starbucks revenue exceeds estimates as customers spend more



Starbucks reported quarterly earnings on Thursday that exceeded analysts' expectations, but sales declined slightly as clients invested more in retail outlets.

  • Earnings per share: 60 cents, adjusted, vs. 56 cents expected
  • Sales: $ 6.31
    billion compared to $ 6.32 billion expected
  • Same store sales: 3% vs. 2.9% expected

The coffee chain posted a second quarter result fiscal net income of $ 663.2 million, or 53 cents per share, compared to $ 660.1 million or 47 cents per share a year ago.

Excluding the sale of the Tazo brand, costs associated with the licensing agreement with Nestle and other acquired Starbucks products polled 60 cents a share, the expected 56 cents a share of analysts surveyed by Refinitiv.

Net sales increased 5% to $ 6.31 billion.

The company achieved sales growth of 3% in the same store, surpassing Wall Street estimates of 2.9%. Starbucks attributed the growth to an average ticket increase of 3%. In the US, sales in stores that were open at least one year increased 4%. In China, the company even saw sales growth of 3% in the same stores, where the company faces increasing competition from Luckin Coffee and a slowing economy.

The company has raised its earnings forecast for the full year. Adjusted or non-GAAP earnings per share are now expected to be in the range of $ 2.75 to $ 2.79, compared to a previous range of $ 2.68 to $ 2.73. Analysts forecasted a profit of $ 2.71 per share for 2019.

Starbucks' loyalty program grew to 16.8 million active members in the United States, an increase of 13% over the previous year. The Seattle-based company has recently revamped the program, offering its members a wider range of redemption options. The changes also mean that customers have to spend more to get a free drink. In contrast to recent changes to its loyalty program in 2016, Starbucks has largely avoided social media repercussions.


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