Starbucks profit climbs as sales increase in Americas, Asia but sales fall short

NEW YORK, N.Y. – Starbucks Corp. says its profit rose in its second fiscal quarter as the world’s biggest coffee company saw sales increase in the Americas and Asia.

The Seattle-based company, which has more than 18,000 locations around the world, raised its outlook for the year.

Global sales at cafes open at least 13 months rose 6 per cent during the three months ended March 31. That included a 6 per cent increase in the Americas, its biggest region, where the number of average transactions and spending per visit increased. In China and the Asia Pacific, where it’s looking to grow, the figure rose 8 per cent.

But it fell 2 per cent in Europe, where Starbucks has struggled and has been working to turn around results.

For the quarter, Starbucks earned $390.4 million, or 51 cents per share. That’s up from $309.9 million, or 40 cents per share, a year ago. Not including one-time items, it earned 48 cents per share, in line with analyst estimates.

Revenue rose 11 per cent to $3.56 billion. But that was shy of the $3.58 billion Wall Street expected, according to FactSet.

Shares of Starbucks were down 3 per cent in aftermarket trading.

The company says it now expect full-year earnings of $2.12 to $2.18, up from the previous forecast of $2.06 to $2.15 per share.