Business

Starbucks sales hit a record but still disappoint Wall Street

Starbucks Corp. said after the market closed Thursday that its first-quarter revenue soared 12% to reach a record $4.2 billion -- but not enough to hit the nearly $4.3 billion that analysts had anticipated.

The Seattle coffee giant beat projections for 69 cents in earnings per share, watching profit swell 25% to reach a new high of 71 cents a share, or $540.7 million, from 57 cents a share, or $432.2 million a year earlier.

During the three months ended Dec. 29, Starbucks said global sales at stores open at least a year rose 5% due partially to a 4% boost in traffic. Analysts had predicted a 5.9% advance.

In the Americas, so-called same store sales were up 5%.

“Holiday 2013 was the first in which many traditional brick and mortar retailers experienced in-store foot traffic give way to online shopping in a major way,” Starbucks Chief Executive Howard Schultz said in a statement.

During the period, Starbucks opened 417 net new stores, bringing the system-wide total to 20,184 units.

Copyright © 2015, Los Angeles Times
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