New stores and higher margins create
record profit
7 % of the turnover bump was created through the existing coffee bar
network: additional customers accounted for 5 %, while another 2 % came through
additional customer spending. The remaining 5 % came from the 1,701 new coffee bars Starbucks has opened
in the past fiscal year, lifting the total to 19,767 stores by the end of
September.
The turnover increase was accompanied by a raised profitability: the operating margin rose from 15.4 % to 17.6 %, especially in the latest quarter. The
July-September quarter saw a 3.795 billion dollar turnover (2.8 billion euro)
and a 481.1 million dollar (350 million euro) net profit, meaning Starbucks
performed 12.8 % (turnover) and 34 % (net profit) better
than the year before. “The fourth
quarter of fiscal 2013 capped off by far the best year in Starbucks’
42-year-history,” CEO Howard Schultz stated.
Despite the positive news, not every region performed as well: Asian fourth
quarter turnover increased 9 % and the American segment sold 7 % more, but Europe, the Middle East and Africa remained
flat. The less favourable European economic situation did lead to 2 % more
customers, but they spent 2 % less.
Starbucks is aiming for another 1,500
new stores in the upcoming year, with 600 in the Americas, 750 in Asia and
the remaining 150 in Europe, the Middle East and Africa.
(translated by Gary Peeters)
