CHINA TOPIX

05/18/2024 06:44:43 pm

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Starbucks Q3 net profit soaring due to U.S. and China markets


July 25th, Starbucks released its Q3 fiscal results closing June 30th. The report shows that the company earns 55 cents per share while its net revenue rose 13% to $3.74 billion. The operating income of Starbucks surge 25% to $615 million. And its operating margins expanded 150 basis points. Starbucks Q3 earnings exceeded investors' expectations. Founder and CEO Howard Schultz said it was the company's best third quarter results ever.

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Troy Alstead, chief financial officer of Starbucks, said: "Our powerful Q3 results reflect the outstanding success of our growth platforms both in the U.S. and globally, with all regions delivering an acceleration in comparable store sales and operating margin versus Q2."

It is reported that because Starbucks expands its trade in America, China and the whole Asia, the sales of global Starbucks stores rose up to 8% in Q3. In addition, the sales of American Starbucks stores rose 9%. The total revenue in U.S. amounted up to $ 2.78 billion. The company claims its sales leverage as a result from lower coffee costs.

The sales in China and Asia-Pacific unit increase strongly as well. The same store sales rose 9% and revenue surge 29% to $233.7 million. However, in Europe, Middle East and Africa, Starbuck coffee was not as popular as that in U.S. and China with same store sales up 2%.

Starbucks expects same store sales to expand in the mid-single digit range, with revenue growing 10% to 13% in fiscal 2014. Operating margin can expand from 150 to 200 basis points, while earnings per share should grow between 18% and 22%.

Now, investors have a lot of faith in Starbucks Corporation. In the stock market after Starbucks released its reports, there was a strong upward trend in Starbucks Corporation shares today.

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