Starbucks reports EPS in-line, beats on revs (78.69 +0.95)
- Reports Q2 (Mar) earnings of $0.32 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of $0.32; revenues fell 4.9% year/year to $6 bln vs the $5.85 bln S&P Capital IQ Consensus.
- Global comparable store sales declined 10%, driven by a 13% decrease in comparable transactions, partially offset by a 4% increase in average ticket
- Americas and U.S. comparable store sales declined 3%, driven by a 7% decrease in comparable transactions, partially offset by a 5% increase in average ticket
- International comparable store sales were down 31%, driven by a 32% decline in comparable transactions, slightly offset by a 1% increase in average ticket; China comparable store sales were down 50%, with comparable transactions down 53%
- Americas and U.S. comparable store sales declined 3%, driven by a 7% decrease in comparable transactions, partially offset by a 5% increase in average ticket
- "We have temporarily closed approximately 50% of our company-operated stores in the U.S., as well as more than 75% in Canada, Japan and the United Kingdom. In China, where our stores are company-operated, 98% are open but operating under modified schedules and enhanced safety-related protocols, including limited cafe seating. We expect China's sales to substantially recover with comparable store sales roughly flat to prior year levels at the end of fiscal year 2020. Currently, approximately 50% of our global licensed store portfolio is also closed, with higher levels of closure in Europe, the Middle East and Africa, and lower levels of closure in Asia Pacific."
- Guidance:
- China comps: Q3 -25-35% and Q4 -10% to flat with FY being -15-25%
- capex of ~$1.5 bln