SEATTLE (dpa-AFX) - Starbucks Corp. (SBUX) Thursday reported an increase in first-quarter profit, as revenues grew 11 percent, reflecting strong US holiday sales and continued growth in China. Nevertheless, revenue for the quarter fell short of Street estimates, while earnings came in line with estimates. Moving ahead, the company backed its full year 2013 financial guidance.
Commenting on the results, Chief Executive Howard Schultz said, 'Solid growth in our U.S. retail business, further expansion of our Channel Development initiatives and continued successful execution against our expansion plans throughout China and Asia Pacific all contributed to the record results we announced today.'
Starbucks, the world's largest specialty coffee retailer's said revenues for the quarter grew 11 percent to $3.80 billion from $3.44 billion last year. Analysts polled by Thomson Reuters estimated revenues of $3.84 billion for the quarter.
Comparable store sales, or sales at company-operated stores open 13 months or longer, increased 6 percent globally, with U.S. up 7 percent and China and Asia Pacific up 11 percent.
Starbucks' America revenues, the company's biggest segment, rose 10 percent to $2.84 billion, helped mainly by increase in comps and revenues from new stores.
EMEA sales inched up 1 percent to $306.1 million. Meanwhile, Starbucks fast growing segment-- China/Asia Pacific segment rose 28 percent to $214.1 million, helped by new store openings and increase in same-store sales.
Channel development division's revenues rose 13 percent to $379.8 million driven mainly by sales of Starbucks- and Tazo-branded K-Cup packs.
Financial Chief Troy Alstead said, 'Our first quarter results demonstrate both efficiency, with record US productivity, and innovation, with the successful launch of Verismo, our newest growth platform.'
Seattle, Washington-based Starbucks' first-quarter profit improved to $432.2 million or $0.57 per share from $382.1 million or $0.50 per share last year. Analysts expected earnings of $0.57 per share for the quarter. Analysts' estimates typically exclude special items.
Looking forward to the full year 2013, the company backed its financial guidance. Starbucks continues to expect earnings of $2.06 to $2.15 per share and revenue growth of 10 to 13 percent. Analysts currently estimate earnings of $2.16 per share on revenues of $14.99 billion for the year.
Starbucks also reaffirmed that it will open about 1300 new stores in 2013, with 600 in US, 600 in China/Asia Pacific and rest in EMEA.
SBUX is currently trading at $54.57, up $0.11 or 0.20%. The stock further gained $0.38 or 0.70%, in after hours on the Nasdaq.
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