Summary
Starbucks Corporation's Q2 2013 filing shows robust revenue growth, with total net revenues increasing by 11.3% year-over-year to $3.56 billion for the quarter. This growth was primarily driven by a 6% increase in comparable store sales globally, alongside contributions from new store openings and the Channel Development business. The company demonstrated strong operational execution, with operating income up 26% and operating margin expanding by 180 basis points to 15.3%. Diluted earnings per share (EPS) rose to $0.51, a 28% increase compared to the prior year, aided by a gain from the sale of its Mexico joint venture. The company also highlighted strategic investments and acquisitions, notably the acquisition of Teavana Holdings, Inc., which contributed to a significant increase in the 'All Other Segments' revenue. While the Americas segment showed strong performance with improved margins, the EMEA segment continued its turnaround efforts with flat revenue but improved operating margin. The China/Asia Pacific segment experienced strong revenue growth but saw a contraction in operating margin due to expansion investments. Starbucks reiterated its positive outlook for fiscal year 2013, anticipating continued comparable store sales growth, new store openings, and further EPS improvement.
Financial Highlights
57 data points| Revenue | $3.55B |
| Cost of Revenue | $1.53B |
| Gross Profit | $2.02B |
| Operating Expenses | $3.06B |
| Operating Income | $544.10M |
| Interest Expense | $6.10M |
| Net Income | $390.40M |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 1.50B |
| Shares Outstanding (Diluted) | 1.52B |
Key Highlights
- 1Total net revenues increased by 11.3% to $3.56 billion in Q2 2013.
- 2Global comparable store sales grew by 6%, with the Americas up 6% and China/Asia Pacific up 8%.
- 3Operating income grew by 26% to $544.1 million, and operating margin expanded by 180 basis points to 15.3%.
- 4Diluted EPS increased by 28% to $0.51, including a gain from the sale of its Mexico joint venture.
- 5Acquisition of Teavana Holdings, Inc. completed in December 2012, contributing to growth in the 'All Other Segments'.
- 6The company repurchased $544.1 million of common stock during the first two quarters of fiscal 2013.
- 7Starbucks expects fiscal year 2013 revenue growth driven by mid-single-digit comparable store sales increases and new store openings.