Starbucks Corporation (NASDAQ:SBUX), the world’s largest coffee chain reported that its profit for its fiscal first quarter increased 25% to $540.7 million or $0.71 per share compared with its $432.2 million profit or $0.57 earnings per share in the same period a year ago.
In terms of revenue, the coffee chain delivered $4.24 billion, an increase of 12% from its $3.79 billion revenue in the same period a year earlier.
Wall Street analysts estimated that Starbucks Corporation (NASDAQ:SBUX) will generate $0.69 earnings per share on $4.3 billion revenue. The earnings of the company beat, but its revenue was slightly lower than the expectations of the street.
During the quarter, Starbucks Corporation (NASDAQ:SBUX) benefitted from lower costs of coffee and stronger sales worldwide.
Howard Schultz, chairman and chief executive officer of Starbucks Corporation (NASDAQ:SBUX) said traditional brick and mortar retailers first experience in-store foot traffic during the holiday season last year, which give way to online shopping in a major way.
He added that the solid traffic and strong first quarter results of the showed the unique combination of its physical and digital assets position Starbucks Corporation (NASDAQ:SBUX) as one of the very few consumer brands with national and global footprint to benefit from seismic shift.
The company said its operating income rose from $630.6 million to $813.5 million and its operating margin climbed from 16.6% to $19.2%.
According to Starbuck Corporation (NASDAQ:SBUX), its same store sales increased 5% globally as well as in the Americas and EMEA. Its sales in China and Asia Pacific region went up 8%.
Commenting on the financial results of the coffee chain, Glen Petraglia, senior vice president and portfolio manager of Standard Life Investments said, “Starbucks is likely to continue to outpace run-of-the mill retail. The transformation from a one-trick pony a decade ago to a multi-pronged consumer company is impressive.”
The stock price of Starbucks Corporation (NASDAQ:SBUX) rose nearly 1% to $74 per share during the extended hours trading on Thursday.
