Starbucks Announces Strong Revenues and Same Store Sales Growth in March; Net Revenues Increase 24 Percent; Comparable Store Sales Increase 10 Percent.
SEATTLE -- Starbucks Corporation (Nasdaq:SBUX SBUX Starbucks Corporation (stock symbol)
SBUX Starbucks Coffee Company ) today reported consolidated net revenues of $743 million for the five-week period ended April 2, 2006, an increase of 24 percent from consolidated net revenues of $599 million for the same five-week period in fiscal 2005. On a comparable store sales basis (stores open for at least 13 months), sales at Company-operated stores increased 10 percent for the five weeks ended April 2, 2006, as compared to the same five-week period in fiscal 2005.
"Starbucks strong March comparable store sales reflect the popularity of both our seasonal espresso beverage offerings and core handcrafted hand·craft
Variant of handicraft.
tr.v. hand·craft·ed, hand·craft·ing, hand·crafts
To fashion or make by hand.
hand·craft beverages," commented Jim Donald James "Jim" Donald is the president and chief executive officer of Starbucks. Early Career
Donald started work as a 16-year-old bag boy at a Tampa, FL Publix chain store. , Starbucks president and chief executive officer. "In addition, the successful execution of our Annual Brewing Event, which began nine days earlier than last year, brought customers to our stores and contributed to our strong March revenue results. The timing shift of the Easter holiday was a positive contributor to our revenue growth in March," added Donald.
"In addition to strong sales driven by new store openings, March revenue growth was positively impacted by the conversion of 67 stores in Hawaii and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. to Company-operated status following the acquisition of those previously licensed markets in January, as well as the addition of two new stores in those markets during March," stated Michael Casey Michael Casey (born 1947 in Lowell, Massachusetts) is an Armenian-American poet.
His first collection, Obscenities, was chosen by Stanley Kunitz for the Yale Series of Younger Poets. , Starbucks chief financial officer. "While we are very pleased with both net revenues and same store sales Same Store Sales
A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more.
This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of growth in March, we recognize that same store sales growth at this level is not sustainable. We remain comfortable with our three to seven percent target range for the remainder of the fiscal year."
For the 26 weeks ended April 2, 2006, consolidated net revenues were $3.8 billion, an increase of 23 percent from consolidated net revenues of $3.1 billion for the same 26-week period in fiscal 2005. Comparable store sales increased eight percent for the 26 weeks ended April 2, 2006, as compared to the same 26-week period in fiscal 2005.
Net stores opened during the 26 weeks ended Stores open as of April 2, 2006 April 2, 2006 --------------------------------------------- United States: Company-operated Stores 318 5,185 Licensed Stores 330 2,765 --------------------------------------------- 648 7,950 International: Company-operated Stores 115 1,310 Licensed Stores 221 1,965 --------------------------------------------- 336 3,275 Total 984 11,225 =============================================
Starbucks plans to release its second quarter fiscal 2006 financial results and fiscal April 2006 revenues on May 3, 2006, and will hold a conference call at 1:30 p.m. Pacific time on the same day to discuss these results. The conference call will be broadcast live over the Internet and can be accessed from the Investor Relations Investor relations
The process by which the corporation communicates with its investors. section of the Company's website at: http://www.starbucks.com/aboutus/investor.asp.
Through the dedication of our passionate partners (employees), Starbucks Coffee Company has transformed the way people in 37 countries enjoy their coffee, one cup at a time. Starbucks is the premier purveyor (World-Wide Web) Purveyor - A World-Wide Web server for Windows NT and Windows 95 (when available).
E-mail: <email@example.com>. of the finest coffee in the world, with more than 11,000 retail locations in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Europe, the Middle East and the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . The Company is committed to offering its customers the highest quality coffee and human connection through the Starbucks Experience, while striving to improve the social, environmental and economic well being of its partners, coffee farmers, countries of coffee origin, and the communities which it serves. Through Ethos Water, Starbucks demonstrates its long history of integrating a social conscience into all aspects of its business. The Company surprises and delights its customers by producing and selling bottled Starbucks Frappuccino(R) coffee drinks, Starbucks DoubleShot(R) espresso drink and Starbucks(R) superpremium ice creams through its joint venture partnerships, and Starbucks(TM) Coffee and Cream Liqueurs through a marketing and distribution agreement, in other convenient locations outside its retail operations. The Company's brand portfolio includes superpremium Tazo(R) teas, Starbucks Hear Music(TM) compact discs, Seattle's Best Coffee Seattle's Best Coffee is a specialty coffee retailer and wholesaler based in Seattle, Washington, USA. It became part of Starbucks Corporation on July 14, 2003. Its international division is owned by FOCUS Brands, Inc. and Torrefazione Italia. These brands' unique and innovative personalities allow Starbucks to appeal to a broad consumer base.
This release includes a forward-looking statement forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding comparable store sales expectations. This forward-looking statement is based on currently available operating, financial, and competitive information and is subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors including but not limited to, coffee, dairy and other raw material prices and availability, successful execution of internal performance and expansion plans, fluctuations in U.S. and international economies and currencies, the impact of initiatives by competitors, the effect of legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , and other risks detailed in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section of Starbucks Annual Report on Form 10-K Form 10-K
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.
See 10-K. for the fiscal year ended October 2, 2005. The Company assumes no obligation to update this forward-looking statement.
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