Starbucks Drips Lower on Q1 Results
January 26, 2012 5:12 PM
Shares of Starbucks (NASDAQ: SBUX) are trading lower in the after-hours following the release of the company's Q1 earnings results. Currently, shares are lower by 1.41%, trading at $47.66; they ended the regular session higher by 1.19%, at $48.34.
Starbucks reported Q1 EPS of $0.50 on revenues of $3.4 billion. Revenues increased 16% year over year. The increase was primarily due to a 9% increase in global comparable stores sales, and 72% growth in the CPG segment.
The 9% increase in comparable store sales was comprised of a 7% increase in the number of transactions and a 2% increase in average ticket.
"Starbucks continues to expand our global footprint and accelerate the innovation and momentum in our CPG business," said Howard Schultz, Starbucks chairman, president and CEO.
"Our first quarter performance represents the highest quarterly earnings in the history of the company, and is a testament to the hard work and commitment of our 200,000 partners (employees) around the world. Starbucks is firing on all cylinders and taking full advantage of the many global opportunities that lie ahead," Schultz added.
Starbucks is maintaining its full-year operating margin improvement target of 50 to 100 basis points over FY11 non-GAAP results on a consolidated basis. The company continues to expect commodity costs will add approximately $230 million of cost pressure to FY12, with the majority expected to impact the first half of the year.
Starbucks Corporation is a roaster, marketer and retailer of specialty coffee in the world, operating in more than 50 countries. Starbucks purchases and roasts whole bean coffees that it sells, along with handcrafted coffee and tea beverages and a variety of fresh food items, through Company-operated stores.
