Starbucks earns more than $3 billion in second quarter

Starbucks Corporation saw its sales increase 6 per cent in the second quarter of the year. This included a record revenue of US $3.9 billion. “Starbucks strong second quarter performance demonstrates the success of our ongoing efforts to drive industry-leading growth,” said Scott Maw, Starbucks CFO, in a statement. “While global comparable store sales growth of 6 per cent was impressive, and squarely in line with our targets, even more significant is the fact that we delivered strong, balanced, revenue and profit growth across all of our reportable segments.” This record growth was reflective of a 6 per cent sales increase in the Americas, the United States, Europe, the Middle East and Africa. The opening of 768 new stores over the past 12 months drove revenue for the Americas, which recorded a net total of US $2.8 billion, up 8 per cent from the same time last year. China/Asia Pacific recorded a growth rate of 7 per cent in the second quarter, contributing to a net revenue growth of US $265.3 million. A total of 699 new store openings drove this increase over the past 12 months. Starbucks recorded a total profit increase of 18 per cent, for the quarter reaching US $64 million. This is 100 million more than the same period a year ago. “Starbucks record operating performance in the second quarter demonstrates that our focus on building a different kind of company,” said Howard Schultz, Chairman, President and CEO of Starbucks Coffee Company, in a statement. “The innovation we are bringing to market through the reinvention of our Teavana business, partnership with Oprah Winfrey and our continued investments in the over 200,000 Starbucks partners, continues to build equity in the Starbucks brand and strengthen our connection to customers in every market in which we operate.” Following its success over the second quarter, Starbucks Coffee Company has reaffirmed its fiscal 2014 target for revenue growth of 10 per cent or greater. It expects to open around 1500 new stores. “The strong momentum we have created in the first half of the year, combined with our robust pipeline of innovation, gives us confidence in our ability to meet our fiscal 2014 growth targets,” said Schultz in the statement.