Starbucks has reported its best third-quarter performance in its history with a 13% rise in net revenues to $3.7bn, and said it plans to open 1,400 net new stores in its 2014 financial year, including c100 in Europe, the Middle East and Asia (EMEA).
Global comparable store sales grew 8% driven by 7% growth in traffic in the 13 weeks to 30 June. It said all regions accelerated against Q2, with EMEA seeing comparative growth of 2% driven by a 5% increase in traffic. Comparative growth was 9% in both the US and China/Asia Pacific.
Operating income increased 25% to $615.2m and operating margin expanded 150 basis points to 16.4%. Earnings per share increased 28% to $0.55 per share.
The company opened 341 net new stores in Q3 and it now operates 19,209 stores globally.
Starbucks is targeting growth in earnings per share in Q4 of $0.03 to between $0.59 and $0.60 and operating margin improvement of c100 basis points over Q4 2012.
The firm’s targets for its 2014 financial year include: revenue growth of c10% to 13%; mid single digit comparable store sales growth; and an additional 1,400 net new stores (c600 in the Americas, 100 in EMEA and 700 in China/Asia Pacific). It’s targeting earnings per share growth of 18% to 22%.
“Starbucks Q3 results represent the best across-the-board third-quarter performance in our 42-year history,” said Howard Schultz, chairman, president and chief executive.
“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.”
Chief financial officer Troy Alstead said: “Our powerful Q3 results reflect the outstanding success of our growth platforms both in the US and globally, with all regions delivering an acceleration in comparable store sales and operating margin versus Q2.
“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.”
