Starbucks Corporation (Nasdaq: SBUX) yesterday announced record revenues and earnings for the first quarter of fiscal 2001.

For the first quarter ended December 31, 2000, consolidated net revenues increased 26% to $667 million compared to consolidated net revenues of $529 million for the first quarter of fiscal 2000. Comparable store sales increased 10 percent as compared with the first quarter of fiscal 2000.

Systemwide retail store sales, which includes net revenues for both company-operated and licensed retail stores, increased 39 percent to $722 million for first quarter of fiscal 2001 from $520 million for the same period in fiscal 2000.

Net earnings for the first fiscal quarter of 2001 were $49.0 million, or $0.25 per share, an increase of 41 percent, compared to $34.7 million, or $0.18 per share, in the first fiscal quarter of 2000.

“Our exceptional first quarter results reflect the continuing growth and strength of Starbucks global business,” stated Howard Schultz, Starbucks chairman and chief global strategist. “We are inspired by the tremendous response to the Starbucks brand domestically and internationally and could not be more pleased with the overall performance of the Company.”

                           STORE INFORMATION

Net stores opened during
the 13 weeks ended Stores open as of
Dec. 31, 2000 Dec. 31, 2000
————- ————-
Continental North America:
Company-Operated Stores 118 2,564
Licensed Stores 96 626
—– —–
214 3,190
International:
Company-Operated Stores 19 192
Licensed Stores 83 435
—– —–
102 627

Total 316 3,817
===== =====


The Company increased its earnings per share goal for fiscal 2001 to $0.91-$0.93 from $0.90-$0.92 and reiterated its previously announced fiscal 2001 goals, including:


  • opening at least 1,100 new company-operated and licensed stores globally;
  • increasing total revenues approximately 25 plus percent;
  • growing comparable store sales in the middle single digits, with monthly anomalies.

The Company will be holding a conference call today at 1:30 p.m. Pacific time, which will be hosted by Howard Schultz, chairman and chief global strategist, Orin Smith, president and chief executive officer and Michael Casey, executive vice president and chief financial officer.

Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. In addition to its more than 3,800 retail locations in North America, the United Kingdom, the Pacific Rim and the Middle East, Starbucks sells coffee and tea products through its specialty operations, including its online store at starbucks.com. Additionally Starbucks produces and sells bottled Frappuccino® coffee drink and a line of superpremium ice creams through its joint venture partnerships. The Company’s other brands enhance the Starbucks Experience through best-of-class products: Tazo Tea Company offers a line of innovative premium teas, and Hear Music produces and distributes a line of exceptional compact discs.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, including anticipated store openings, trends in or expectations regarding the Company’s operations and financial results, are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors including but not limited to, coffee and other raw material prices and availability, successful execution of internal performance and expansion plans, the impact of competition, the effect of legal proceedings and other risks detailed in the Company’s filings with the Securities and Exchange Commission.

                  CONSOLIDATED STATEMENT OF EARNINGS

Three Months Ended Three Months Ended
—————— ——————
Dec. 31, Jan. 2, Dec. 31, Jan. 2,
2000 2000 2000 2000
(13 weeks) (13 weeks) (13 weeks)(13 weeks)
———- ———- ———- ———
(In thousands, except
earnings per share)

Systemwide retail store
sales/a $722,000 $520,000
======== ========

Net revenues
Retail $562,407 $440,785 84.3% 83.3%
Specialty 104,980 88,547 15.7% 16.7%
——- —— —– —–
Total net revenues 667,387 529,332 100.0% 100.0%

Cost of sales
and related occupancy 292,220 240,714 43.8% 45.5%
——- ——- —– —–
Gross margin 375,167 288,618 56.2% 54.5%

Joint venture income 4,805 3,395 0.7% 0.6%

Store operating expense 209,690 164,200 b/37.3% b/37.3%
Other operating expense 21,786 17,745 c/20.8% c/20.0%
Depreciation and amortization 37,562 29,290 5.6% 5.5%
General and administrative 34,877 26,145 5.2% 4.9%
—— —— —- —-

Operating income 76,057 54,633 11.4% 10.4%

Interest/other income, net 1,713 1,414 0.3% 0.2%
—– —–

Earnings before
income taxes 77,770 56,047 11.7% 10.6%

Income taxes 28,775 21,298 4.4% 4.0%
—— —— —- —-

Net earnings $48,995 $34,749 7.3% 6.6%
======= =======

Earnings per share-diluted $0.25 $0.18
Shares used in calculation 196,830 189,340

Selected Balance Sheet Data (in millions): Dec. 31, 2000 Oct. 1, 2000
————- ————
(audited)

Cash and Short-term Investments $ 228 $ 132
Long-term Debt $ 7 $ 7
Equity $1,228 $ 1,148



  • (a) Systemwide retail store sales include net revenues for both Company-operated and licensed retail stores.
  • (b) Calculated as a percentage of retail revenues.
  • (c) Calculated as a percentage of specialty revenues.