Starbucks Corp. (NASDAQ: SBUX) reported late Wednesday Wednesday that its second-quarter net income climbed to $261.6 million, or 34 cents a share, from a profit of $217.3 million, or 28 cents a share, in the year-ago quarter. Total net revenues increased 10% to $2.8 billion. Analysts, on average, expected the company to report earnings of 34 cents a share on revenue of $2.73 billion.
"Starbucks record fiscal second quarter results reflect solid performance and execution across all of our businesses," said Howard Schultz, chairman, president and ceo. "Our sales, traffic and customer trends all point to the expanding power of the Starbucks business and brand. And our 40th anniversary celebration continues to resonate around the world, driving strong engagement among our partners and our customers. I saw this firsthand in China, where my visit this week confirmed how ideally-positioned Starbucks is to profitably grow its store presence across China in the years ahead," added Schultz.
For full-year 2011, the company said that it is now targeting high single-digit revenue growth based on a 52-week comparable year, driven by mid single-digit comparable store sales growth. The company now expects EPS of $1.46 to $1.48, reflecting the high end of its target range of 15% to 20% growth over fiscal 2010 non-GAAP EPS on a 52-week basis. -- Included in the revised EPS target are higher commodity costs, which are now expected to have an unfavorable impact on EPS of approximately $0.22 for the full fiscal year. The additional $0.02 (compared to most recent guidance) reflects expected higher dairy and fuel prices.
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