US Demand Lifts Starbucks Sales as Revenue Misses Forecast

On October 29, Starbucks reported that global same-store sales rose 7.2% in its fiscal fourth quarter, which covered July through September. The increase exceeded the 6% growth analysts had expected, but the company’s net revenue fell 4% to $9.14 billion, below the $9.2 billion forecast.</n The US was the main source of sales growth: same-store sales there climbed 7.7%. Starbucks said growth came from customers across age and income groups and different parts of the day, while popular fall drinks also helped draw business. International same-store sales increased by less than 1%, and traffic at international stores declined 2.8%.</n Starbucks attributed the revenue decline to lower contributions from China, following the spring completion of a joint venture. Boyu Capital operates Starbucks stores in China under the arrangement, while Starbucks retains a 40% interest. The company has also been narrowing its US store base toward locations it considers most profitable; it announced in late September that it would close 250 North American stores. Adjusted earnings were 80 cents per share, above the 72 cents analysts expected. Shares fell 1% in after-hours trading Thursday.