Starbucks China sales soar 18 per cent
In this article (5)
Starbucks China has recorded a massive 18 per cent increase in sales in the second quarter, fuelled by a 5 per cent increase in transactions.
The Chinese boost was one of a string of highlights in the quarter in which Starbucks set a new sales record of US$5 billion globally, up by 6 per cent on a same-stores basis.
The Seattle-based coffee giant served nearly 16 million more customer occasions worldwide in the three months to March 27, 12 million of those in the US where it is experiencing a resurgence.
Earnings per share rose 18 per cent to a record 39 cents, with US and Americas comp-store sales up 7 per cent. Operating profit rose 11 per cent to a second quarter record $878 million, its operating margin up to 17.3 per cent.
Starbucks boosted its worldwide store network by 350 to 23,921.
CEO and chairman Howard Schultz described the Starbucks China performance as “stunning” and said the overall financials underscored the strength of the brand and the resilience of the global retail and consumer packaged goods business.
“Loyalty, technology and innovation are continuing to fuel our digital flywheel and propel our business forward all around the world.”
Questions & Answers
Q.What contributed to the significant increase in Starbucks' China sales?
What contributed to the significant increase in Starbucks' China sales?
The substantial 18 per cent rise in sales for Starbucks China during the second quarter was primarily driven by a 5 per cent increase in the number of customer transactions recorded within that period. This transactional growth boosted their overall performance.
Q.How did Starbucks' global sales perform in the quarter?
How did Starbucks' global sales perform in the quarter?
Starbucks achieved a new global sales record of US$5 billion, representing a 6 per cent increase on a same-stores basis. The company also served nearly 16 million more customer occasions worldwide, with 12 million of these in the US.
Q.What was the growth in Starbucks' worldwide store network during this quarter?
What was the growth in Starbucks' worldwide store network during this quarter?
During the second quarter, Starbucks expanded its global presence by adding 350 new stores to its network. This brought the total number of Starbucks outlets worldwide to 23,921 by the end of the reporting period.
Q.What was the company's overall operating profit and margin for the quarter?
What was the company's overall operating profit and margin for the quarter?
Starbucks reported an 11 per cent increase in operating profit, reaching a second-quarter record of $878 million. The company's operating margin for the quarter stood at 17.3 per cent, indicating strong profitability.
Reader pulse
Is Starbucks' China growth sustainable?
19,135 votes so far