Starbucks sees mixed Q2 results across global segments

Starbucks Corporation has today reported financial results for its 13-week fiscal second quarter ended 21 March 2019.

Global comparable store sales increased 3%, driven by a 3% increase in average ticket. Consolidated net revenues stood at $6.3bn, a rise of 5% over the prior year.

Americas and US comparable store sales increased 4%, driven by a 4% increase in average ticket. China/Asia Pacific also saw sales rise - an increase of 2%, driven by a 2% increase in average ticket.

However, Europe, the Middle East and Africa (EMEA) faired less well with net revenues declining by 9% from Q2 FY18 to $227.5m due to unfavorable foreign currency translation and the conversion of Starbucks' France and Netherlands retail businesses to fully licensed operations - partially offset by 307 net new store openings, or 10% store growth, over the past 12 months.

EMEA's operating loss of $2.8m was 74% lower versus an operating loss of $10.9m in Q2 FY18.

The company opened 319 net new stores in Q2, yielding 30,184 stores at the end of the quarter, a 7% increase over the prior year. 94% of net new store openings were outside of the US, while 88% were licensed

Kevin Johnson, president and ceo, said, “Starbucks delivered another quarter of solid operating results, demonstrating that our ‘Growth at Scale’ agenda is working.

'We are especially pleased with our comparable store sales growth in our two lead markets, the US and China, where we are also continuing to drive strong new store development with industry-leading returns. With solid first-half financial results, we are on track to deliver on our full-year commitments.

“Starbucks remains focused and disciplined in the execution of our three key strategic priorities: accelerating growth in our targeted markets of the US and China, expanding the global reach of the Starbucks brand through our Global Coffee Alliance with Nestlé, and increasing shareholder returns.'

Johnson concluded, 'With our efforts to streamline the company and elevate the Starbucks brand, we are not only positioning the company to deliver more predictable and sustainable operating results but are also building Starbucks to be an enduring company that creates meaningful value for shareholders for decades to come.'