Starbucks income up 34% on increased traffic

by Staff
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SEATTLE — Increased traffic and customer spending helped contribute to a 34% increase in earnings during the third quarter at Starbucks Corp.

For the quarter ended July 3, the company had earnings of $279.1 million, equal to 36c per share on the common stock, up 34% from $207.9 million, or 27c per share, during the same quarter of the previous year. Revenue for the quarter was $2,932.2 million, up 12% from $2,612 million.

“Starbucks record third-quarter results reflect both the underlying strength and continuing momentum we have been experiencing across all of our business segments and around the world,” said Howard Schultz, chairman, president and chief executive officer. “These results demonstrate the power and the extraordinary global potential of our unique new business model. Starbucks has never been healthier, more connected to our customers and partners or better positioned to go after the tremendous business opportunities that lie ahead.”

Operating income for the U.S. segment was $378.6 million, up 30% from $292.3 million during the same quarter of the previous year. Revenue for the segment was $2,013.9 million, up 9% from $1,852.9 million.

“Efforts to enhance the store experience continue to resonate with our customers as strong traffic gains and sales leverage helped mitigate the impact of higher commodity costs,” said Troy Alstead, chief financial officer. “With our global store portfolio performing at record levels and momentum building in C.P.G., we have a solid foundation in place to pursue continued profitable growth in fiscal 2012 and beyond. As we build upon the strength of the brand and our evolving multi-channel strategy, we expect to drive growth in earnings per share in fiscal 2012 in the range of 15% to 20%”

For the nine months ended July 3, the company had earnings of $887.4 million, or $1.15 per share, up 33% from $666.7 million, or 87c per share, during the same period of the previous year. Revenue for the nine months was $8,668.7 million, up 10% from $7,869.4 million.

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