Global site navigation

Starbucks profit rises despite hit from China
Business and Economy

Starbucks profit rises despite hit from China

by  AFP 1 min read
Higher comparable sales in the United States helped offset the hit from a drop in China
Higher comparable sales in the United States helped offset the hit from a drop in China. Photo: NICOLAS ASFOURI / AFP/File
Source: AFP

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

Starbucks reported higher quarterly profits Thursday, fueled by solid North American growth that compensated for continued weakness in China due to Covid-19 restrictions.

The big coffee chain's results were a study in contrast between its two main markets, with North American comparable sales jumping 10 percent and China comparable sales slumping 29 percent.

The results in the United States reflected a lift from "strategic" price increases that helped offset the impact of increased spending on wages and employee benefits.

Acting Chief Executive Howard Schultz described the results as strong in light of "challenging global consumer and inflationary environments, a soft quarter for retail overall and the unprecedented, Covid-related headwinds that unfolded in China in Q1."

Overall, profits rose 4.8 percent from the year-ago period to $855.2 million in the fiscal first quarter ending January 1. Revenues increased 8.2 percent to $8.7 billion.

Read also

Ford shares fall as Q4 profits lag estimates

The profits translated into earnings per share of 75 cents, a bit below analyst estimates.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

Shares fell 2.4 percent to $106.57 in after-hours trading.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Hot: