Starbucks reported mixed quarterly results Tuesday and raised its full-year guidance for earnings and sales. While the company’s earnings exceeded Wall Street’s expectations, sales fell short of estimates, hurt by the slower recovery in some international markets. The company’s shares fell nearly 2% in expanded trading.
Starbucks reported net income of $ 659.4 million, or 56 cents per share, for the second quarter, compared to $ 328.4 million, or 28 cents per share, a year earlier. Without articles, the coffee chain earned 62 cents per share, surpassing the analysts surveyed by Refinitiv, 53 cents per share. Net sales rose 11% to $ 6.7 billion, falling short of expectations of $ 6.8 billion. Global sales in the same store increased 15% as the company posted a 10% decrease from the same period last year.
The company opened five new Netto cafes in the quarter. That includes the impact of the closings of around 300 locations in the US and Canada, announced back in June as part of a broader strategy to update the restaurant’s presence.
For the full 2021 fiscal year, Starbucks now expects earnings of $ 2.65 to $ 2.75 per share, compared to its previous range of $ 2.42 to $ 2.62 per share. Adjusted earnings of $ 2.90 to $ 3 per share are expected, compared to the previous outlook of $ 2.70 to $ 2.90 per share. Analysts had expected earnings per share of $ 2.85 for the fiscal year.
The company increased its revenue guidance for the full year from $ 28.5 billion to $ 29.3 billion to $ 28.5 billion to $ 29.3 billion. Wall Street forecast sales of $ 28.6 billion. Fiscal year 2021 includes a 53rd week in which Starbucks is projected to generate sales of approximately $ 500 million.