Starbucks Announces Strong Revenues and Same Store Sales Growth in March; Net Revenues Increase 24 Percent; Comparable Store Sales Increase 10 Percent.
"Starbucks strong March comparable store sales reflect the popularity of both our seasonal espresso beverage offerings and core handcrafted beverages," commented Jim Donald, 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 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, Starbucks chief financial officer. "While we are very pleased with both net revenues and same store sales 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 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 of the finest coffee in the world, with more than 11,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. 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 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 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, 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 for the fiscal year ended October 2, 2005. The Company assumes no obligation to update this forward-looking statement.
(C) 2006 Starbucks Coffee Company. All rights reserved.
|Printer friendly Cite/link Email Feedback|
|Date:||Apr 6, 2006|
|Previous Article:||Baby Bee Bright Corporation Launches $10 Million Global Media Fund Advertising Campaign.|
|Next Article:||Schaeffer's S&P 500 Index Hot Stocks Features Bed Bath & Beyond, Apple Computer, 3M Company, Nordstrom, and Merck.|