This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Starbucks Sales Miss Forecasts as Shares Slide

NEW YORK ( TheStreet) - Starbucks (SBUX - Get Report) shares were falling in after-market trading as revenue fell short of analyst expectations for the coffee-focused retailer's
September-ending fourth quarter.

The Seattle-based company reported net income of $481.1 million, or 63 cents a share, up 34% compared to the year earlier fourth quarter. Earnings included a 3-cent gain on the sale of Starbucks equity in Chile and Argentina joint ventures, it said. Consensus expectations were calling for the company to earn 60 cents a share.

Revenue rose 12.8% to $3.79 billion compared to the year earlier quarter, slightly below expectations of $3.81 billion.

Starbucks' global comparable stores sales rose 7% fueled by a 5% increase in traffic, it said. U.S. operations had comp sales growth of 8% in the quarter. Starbucks said comparable sales in its China and Asia Pacific markets rose 8%, but just 2% comp growth in its Europe, Middle East and Africa markets.

The company reported a 29% jump in operating income to $669 million. Operating margin for the quarter expanded 220 basis points to 17.6%.

Starbucks opened 558 new stores in last quarter.

Shares were falling 3.2% to $78.20.

For the full year net revenue rose 12% to $14.9 billion. Full-year global comparable sales rose 7%; with 8% comp growth in the U.S., specifically.

Starbucks ended fiscal 2013 with 19,767 stores.

"The fourth quarter of fiscal 2013 capped off by far the best year in Starbucks 42-year-history," said Howard Schultz, chairman, president and CEO of Starbucks. "Our results were driven by disciplined, ongoing efforts to elevate the value and relevance of the Starbucks brand, continued innovation and the success of our efforts to deepen our connection to customers and communities around the world." Starbucks introduced fiscal 2014 targets. The company expects revenue growth between 10% and 13%, which includes mid-single digit comparable store sales growth. Starbucks also forecasted 2014 earnings per share in the range of $2.55 to $2.65, representing growth of 18% to 22%.

The company reiterated 2014 global comparable store sales growth in the mid-single digits and fiscal 2014 EPS of $2.55 to $2.65 a share. The company shaved its revenue target slightly: It expects revenue of 10% or greater for 2014, whereas it previously said 2014 revenue growth of 10% to 13%.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SBUX $51.84 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs