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STARBUCKS COFFEE REPORTS THIRD-QUARTER RESULTS; NET INCOME RISES 64 PERCENT ON 61-PERCENT INCREASE IN SALES

 STARBUCKS COFFEE REPORTS THIRD-QUARTER RESULTS;
 NET INCOME RISES 64 PERCENT ON 61-PERCENT INCREASE IN SALES
 SEATTLE, July 29 /PRNewswire/ -- Starbucks (NASDAQ: SBUX) today announced financial results for the third quarter (13 weeks) and nine months ended June 28, 1992, showing increases in sales, net earnings, and earnings per share over the same periods in fiscal year 1991.
 For the third quarter of fiscal 1992, net sales increase 61.4 percent to $23,463,000 from $14,537,000 in 1991. Earnings before tax increased 94.0 percent to $1,459,000 from $752,000 in the prior year. Net earnings after tax of $903,000, or 7 cents per share, improved 63.9 percent from the previous year's $551,000, or 5 cents per share. The average number of shares outstanding increased from 10.4 million to 12.4 million largely as a result of the company's private offering of 2.2 million shares of redeemable preferred stock in December 1991.
 Net sales increased as a result of strong same store sales growth coupled with the rapid opening of new stores. Comparable store net sales for those stores open 13 months or longer at the end of the period grew by 20.3 percent for the quarter while new stores sales accounted for 67 percent of the total sales increase.
 For the nine months ended June 28, 1992, net sales increased by 59.3 percent to $66,224,000 from $41,580,000 in 1991. Comparable store sales grew by 19.5 percent for the nine-month period. Earnings before tax increased 117.9 percent to $4,840,000 from $2,221,000 in the prior year. Net earnings after tax of $3,048,000, or 26 cents per share, improved 50.9 percent from the previous year's $2,020,000, or 20 cents per share. Net income for 1992 was after taxes of 37 percent while net income in 1991 was after taxes of 9.1 percent because of a tax loss carryforward.
 On May 15, 1992, the company filed a registration statement for the initial public offering of 1.5 million shares of its common stock. The offering closed on July 6, 1992, and, with the exercise of the underwriters' over-allotment option of 315,000 shares, resulted in the company issuing 1,815,000 common shares. The offering was priced at $17 per share and net proceeds to the company totaled $28.7 million. Concurrent with the closing of the offering, all 5,822,223 shares of the company's redeemable preferred stock converted to common stock on a one-for-one basis.
 The company opened 14 stores during the quarter and ended the period with 137 company-operated stores. The total number of new stores opened year-to-date is 38 and management expects to open a total of 50 stores during fiscal 1992. The company is continuing a test of three kiosks at Sea-Tac airport in Seattle in a joint venture with Host/Marriott. Starbucks is America's largest roaster/retailer of highest quality specialty coffee, operating 137 stores in the metropolitan areas surrounding Seattle; Chicago; Vancouver, British Columbia; Portland, Ore; and Los Angeles, San Diego and San Francisco. In addition, the company has a specialty sales (wholesale) division serving fine restaurants and institutions as well as a national direct mail business with customers in every state.
 The company's stock is traded over the counter on the NASDAQ National Market System under the symbol SBUX.
 STARBUCKS CORP.
 (In thousands, except earnings per share)
 Three Months Ended Nine Months Ended
 June 28, June 30, June 28, June 30,
 1992 1991 1992 1991
 Net sales $23,463 $14,537 $66,224 $41,580
 Earnings before taxes 1,459 752 4,840 2,221
 Net earnings 903 551 3,048 2,020
 Earnings per share $ 0.07 $ 0.05 $ 0.26 $ 0.20
 Weighted average
 shares outstanding 12,357 10,359 11,835 10,089
 STARBUCKS CORP.
 CONDENSED STATEMENT OF OPERATIONS
 (In thousands, except earnings per share)
 June 28, June 30, $ Percent
 Three Months Ended: 1992 1991 Change Change
 Retail sales $20,346 $12,616 7,730 61.3
 Wholesale & direct mail 3,117 1,921 1,196 62.3
 Net sales 23,463 14,537 8,926 61.4
 Cost of sales and related
 occupancy costs 10,462 6,493 3,969 61.1
 Store operating expenses 7,991 4,950 3,041 61.4
 Depreciation and other
 operating expenses 1,553 1,063 490 46.1
 General and administrative
 expenses 2,096 1,256 840 66.9
 Operating income 1,361 775 586 75.6
 Interest, net 98 (23) 121 526.1
 Earnings before income taxes 1,459 752 707 94.0
 Income taxes 556 201 355 176.6
 Net earnings $ 903 $ 551 352 63.9
 Net earnings per share $ 0.07 $ 0.05 -- --
 Weighted average number of
 shares outstanding 12,357 10,359 -- --
 June 28, June 30, $ Percent
 Nine Months Ended: 1992 1991 Change Change
 Retail sales $57,537 $35,975 21,562 59.9
 Wholesale & direct mail 8,687 5,605 3,082 55.0
 Net sales 66,224 41,580 24,644 59.3
 Cost of sales and related
 occupancy costs 29,797 19,262 10,535 54.7
 Store operating expenses 21,844 13,504 8,340 61.8
 Depreciation and other
 operating expenses 4,219 2,941 1,278 43.5
 General and administrative
 expenses 5,498 3,689 1,809 49.0
 Operating income 4,866 2,184 2,682 122.8
 Interest, net (26) 37 (63) -170.3
 Earnings before income taxes 4,840 2,221 2,619 117.9
 Income taxes 1,792 201 1,591 791.5
 Net earnings $ 3,048 $ 2,020 1,028 50.9
 Net earnings per share $ 0.26 $ 0.20 -- --
 Weighted average number of
 shares outstanding 11,835 10,089 -- --
 STARBUCKS CORP.
 (In percents)
 June 28, June 30, Change in
 Three Months Ended: 1992 1991 Percent of Sales
 Retail sales 86.7 86.8 -0.1
 Wholesale & direct mail 13.3 13.2 0.1
 Net sales 100.0 100.0 0.0
 Cost of sales and related
 occupancy costs 44.6 44.7 -0.1
 Store operating expenses
 (as percent of retail) 39.3 39.2 0.0
 Depreciation and other
 operating expenses 6.6 7.3 -0.7
 General and administrative
 expenses 8.9 8.6 0.3
 Operating income 5.8 5.3 0.5
 Interest, net 0.4 -0.2 0.6
 Earnings before income taxes 6.2 5.2 1.0
 Income taxes 2.4 1.4 1.0
 Net earnings 3.8 3.8 0.1
 June 28, June 30, Change in
 Nine Months Ended: 1992 1991 Percent of Sales
 Retail sales 86.9 86.5 0.4
 Wholesale & direct mail 13.1 13.5 -0.4
 Net sales 100.0 100.0 0.0
 Cost of sales and related
 occupancy costs 45.0 46.3 -1.3
 Store operating expenses
 (as percent of retil) 38.0 37.5 0.4
 Depreciation and other
 operating expenses 6.4 7.1 -0.7
 General and administrative
 expenses 8.3 8.9 -0.6
 Operating income 7.3 5.3 2.1
 Interest, net 0.0 0.1 -0.1
 Earnings before income taxes 7.3 5.3 2.0
 Income taxes 2.7 0.5 2.2
 Net earnings 4.6 4.9 -0.3
 -0- 7/29/92
 /CONTACT: Orin Smith of Starbucks, 206-447-1575/
 (SBUX) CO: Starbucks Corp. ST: Washington IN: REA SU: ERN


TS-SF -- SE005 -- 4531 07/29/92 10:53 EDT
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Date:Jul 29, 1992
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