Strong holiday performance drives Starbucks Q1 growth

Seattle -- Starbucks Corp.’s first-quarter profit surged 82% as new offerings and holiday gave a boost to store traffic. Net income increased to $983.1 million, from $540.7 million a year earlier.



Consolidated net revenues the quarter, ended Dec. 28, increased 13% to $4.8 billion. Global same-store sales increased 5%, with a 2% increase in traffic. Same-store sales in the company’s U.S.-dominated region rose 5%, with a 2% increase in traffic, better than analysts had expected.



“Starbucks record Q1 fiscal 2015 financial and operating performance was exceptional by every metric and standard,” said Howard Schultz, chairman, president and CEO. “Our reimagined in-store holiday experience that included a vastly expanded assortment of Starbucks Cards, new holiday food, beverage and merchandise offerings and the opportunity to win ‘Starbucks for Life’ resonated powerfully with our customers and drove both increased traffic and tremendous excitement in our stores and around the Starbucks brand.”



The company added 896,000 new My Starbucks Rewards members in December. The program now has over nine million members.



“Starbucks results in the first quarter of fiscal 2015 were very strong, with notable growth across the globe,” said Scott Maw, Starbucks CFO. “Our continued ability to drive growth through innovation, operational excellence and our unique customer connection, along with our sharp focus on financial discipline, give us confidence in reaffirming our growth targets for fiscal 2015.”



Starbucks reaffirmed that it has 1,650 net new store openings scheduled for the year, including 650 in the Americas region (half licensed) and approximately 850 in the China/Asia Pacific: region (approximately 850, two-thirds licensed).



The retailer has allocated capital expenditures of approximately $1.4 billion for the year, driven primarily by store investments, which include new stores, mobile order and pay program.