1 February 2006 - Starbucks Corporation (Nasdaq:SBUX) today announced record earnings for its fiscal first quarter for the period ended January 1, 2006, and revenues for the four-week period ended January 29, 2006.
Fiscal First Quarter 2006 Results:
-- First quarter consolidated net revenues increased 22 percent to a record $1.9 billion
-- Net earnings rose 20 percent to a record $174 million
-- Earnings per share increased to $0.22 from $0.17 in the comparable period in fiscal 2005
January 2006 Revenue Highlights:
-- January net revenues increased 23 percent
-- January comparable store sales rose 10 percent
Updated Fiscal 2006 Target:
-- Earnings per share target range increased by $0.05 per share to $0.68 - $0.70
For the 13 weeks ended January 1, 2006, consolidated net revenues increased 22 percent to $1.9 billion from $1.6 billion for the same period in fiscal 2005, and net earnings increased 20 percent to $174 million from $145 million for the same period in fiscal 2005. Fully diluted earnings per share were $0.22 for the 13 weeks ended January 1, 2006, compared to a split-adjusted $0.17 per share for the comparable period in fiscal 2005. The Company adopted the new accounting requirements related to expensing stock-based compensation in the first fiscal quarter of 2006, which reduced net earnings by $0.02 per share in the quarter.
"I am very pleased with our first quarter performance, which demonstrated focused execution at all levels of the business and delivered the most successful first quarter in Starbucks history," commented Howard Schultz, Starbucks chairman. "Our core beverages, coupled with a strong holiday promotion, drove results in our retail stores, while solid growth in licensed locations led to the increase in our specialty business revenues. We ended the first quarter with a strong foundation for Starbucks fiscal year 2006 which gave us the confidence to raise our full year earnings per share target range by $0.05 per share to $0.68 to $0.70 per share."
"Building on the success of our first quarter, we are proud that revenue results for the month of January were just as impressive," commented Jim Donald, Starbucks president and ceo. "Due to the strength of the Starbucks brand and the exemplary execution of our holiday promotion, a record number of Starbucks Cards were activated during the holiday season and are bringing valued customers, both existing and new, into Starbucks stores in record numbers. We are very pleased with 10 percent comparable store sales growth in January, but we also recognize that same store sales growth at this level is not sustainable. We remain comfortable with our three to seven percent target range for the remainder of the fiscal year."