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Starbucks sets sales record as customers return

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Starbucks achieved record sales in the third quarter as the pandemic effects receded, with customers filling its stores.

However, the company’s share price fell after lowering sales growth forecast in China, the second-largest market outside the US.

The coffee giant based in Seattle said it hit an all-time high record of $7.5 billion in sales, equal to a 78% increase in the April-June period.

According to FactSet polls, the record beat Wall Street’s sales of $7.3 billion.

Starbucks announced that its global same-store sales increased 73% more than the year before.

As several of its stores closed in the April-June period, Starbucks suffered a decrease of 40% in sales during the pandemic. 

Starbucks generated a net profit of $1.15 billion in the fiscal third quarter as same-store sales grew 83% in the US and 19% in China during the fiscal third quarter. 

The one-time-item adjusted company generated record revenue of $1.01 per share. This far exceeds analysts’ expectations of 78 cents.

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Starbucks updated its annual financial guidance based on the results.

The company said it currently expects global growth of 20% to 21% in the same-store sales, up from 18% to 23%. Adjusted earnings per share are also expected to increase from $2.90 to $3.20 in minimum.

However, the company expects less growth in same-store sales in China. Starbucks said it expects growth from 18% to 20%, down from 27% to 32%.

In aftermarket trading, the Starbucks share price fell 3% to $122.

 

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