Starbucks Corp. reported a 12-percent same-store sales increase in the China/Asia Pacific region for the second quarter ended March 29, the company said Thursday, driven by a 10-percent increase in traffic.
In the Americas, same-store sales rose 7 percent, including a 2-percent increase in traffic. The company said transactions in the U.S. increased by more than 10 million during the quarter.
Global same-store sales increased 7 percent, with a 3-percent jump in traffic worldwide.
“Starbucks’ record financial and operating performance in Q2 was driven by our people all around the world, yet woven together by one common thread: industry-leading, partner-facing and customer-facing innovation,” Howard Schultz, Starbucks’ chairman and CEO, said in a statement. Starbucks refers to employees as partners.
“Innovation is the force that will continue to drive our business and enable us to expand and increase revenues and profits — always through the lens of humanity — long into the future,” he added.
The Seattle-based operator lost 132 licensed locations with the closure of Target stores in Canada, but opened 210 net units during the quarter, including its 5,000th unit in the China/Asia Pacific region, bringing its total unit count to 22,088 locations systemwide.
The consolidated revenue increase of 18 percent for the quarter included the acquisition of Starbucks Japan and new unit openings, but was partially offset by unfavorable foreign currency exchange.
For the year, the company projected same-store sales increases in the mid-single digits.
In fiscal 2015, 600 new units are expected to open in the Americas, half of which will be licensed; 200 in Europe, the Middle East and Africa, mostly licensed; and 850 in China/Asia Pacific, about two-thirds of which will be licensed.
The company’s per share data has been adjusted for the stock split announced on March 18 and effected on April 9.
2Q NET INCOME
Result: $494.9 million, or 33 cents per share% Increase: 16% (from $427 million, or 28 cents per share)
2Q REVENUE
Result: $4.6 billion% Increase: 18% (from $3.7 billion)
2Q SAME-STORE SALES
% Increase systemwide: 7%
% Increase Americas: 7%
% Increase Europe, Middle East and Africa: 2%
% Increase China/Asia Pacific: 12%
Source: Company report
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