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Sunday, 09 May 2021 05:43 GMT

Starbucks earnings bounce on US sales comeback


(MENAFN - AFP) Profits at Starbucks doubled in the most recent quarter following a return to sales growth in the Americas after declining due to Covid-19 lockdowns, the coffee giant reported Tuesday.

Starbucks raised its full-year profit and revenue forecasts following the results, which also showed a huge surge in China sales.

The results "demonstrated impressive momentum in the business with full sales recovery in the US," the chain's Chief Executive Kevin Johnson said.

"We have positioned Starbucks for the inevitable great human reconnection that we see unfolding the US and will propagate in every market around the world, where people once again connect with others face-to-face," he said.

Profits for the quarter ending March 28 were $659.4 million, just over twice the level in the year-ago period.

Revenues rose 11.2 percent to $6.7 billion.

In the United States, Starbucks notched comparable sales growth of nine percent after a drop of five percent in the prior quarter.

US comparable stores plummeted 40 percent in the third quarter of fiscal 2020, the period most affected by Covid-19.

In China, Starbucks' comparable sales jumped 91 percent over the year-ago period.

Shares fell 1.9 percent in after-hours trading to $113.90.

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