A pedestrian carries a Starbucks branded cup in San Francisco, California, U.S., on Thursday, April 28, 2022. Starbucks Corp.
David Paul Morris | Bloomberg | Getty Images
Starbucks on Tuesday reported quarterly revenue that topped analysts’ expectations as U.S. sales growth offset sharp declines in China.
Shares rose 2.3% on the report in prolonged trading.
Here’s what the corporate reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 59 cents adjusted, meeting expectations
- Revenue: $7.64 billion vs. $7.6 billion expected
The coffee giant reported fiscal second-quarter net income attributable to Starbucks of $674.5 million, or 58 cents per share, up from $659.4 million, or 56 cents per share, a yr earlier.
Excluding items, Starbucks earned 59 cents per share, in keeping with estimates from analysts surveyed by Refinitiv.
Net sales rose 14.5% to $7.64 billion, topping expectations of $7.6 billion.Global same-store sales increased 7% within the quarter, fueled by strong growth in the USA.
U.S. same-store sales climbed 12%, as customers spent more per order and visited more often. Lively membership of Starbucks’ loyalty program jumped 17% to 26.7 million customers.
While demand for its coffee stays strong within the U.S., the corporate’s baristas have been unionizing within the hopes of earning higher pay and dealing conditions. About 50 company-owned locations have voted in favor of unionizing within the last six months. Since Howard Schultz returned as interim CEO in early April, he has paused stock buybacks and launched into a listening campaign with baristas nationwide to curb the growing union push.
Outside the U.S., it was a grim quarter for Starbucks. International same-store sales shrank 8%, dragged down by sharp declines in China, the corporate’s second-largest market. Chinese same-store sales sank 23% within the quarter because the country reimposed lockdowns after Covid outbreaks.
The corporate also said within the earnings release that it will announce investments in its employees, stores and brand and share its fiscal 2022 financial targets throughout the conference call with analysts. Last quarter, it said it expects GAAP earnings per share to fall by a variety of 4% to six% and adjusted earnings per share to rise by 8% to 10% throughout the fiscal yr.
Starbucks opened 313 net latest locations within the quarter.
Read the total earnings report here.
