Starbucks Corporation today reported financial results for its fourth quarter ended September 28, 2008, as well as full fiscal 2008 results.
As Starbucks moves from fiscal 2008, a year of significant transition for the company, it is well positioned to deliver in fiscal 2009 with the following foundational planks in place:
• A re-architected cost structure to allow for long-term operating margin expansion
• A healthier store portfolio achieved through closure of underperforming stores
• A stronger value and rewards platform - consistent with Starbucks premium brand
• A renewed emphasis and investment around coffee leadership
• A galvanized company with a common purpose
“With a re-architected cost structure at the close of fiscal 2008, we began the new fiscal year with a healthier store portfolio that will allow for operating margin expansion,” commented Howard Schultz, chairman, president and ceo. “Despite a global economic environment which shows no immediate signs of improvement, the steps we took in FY08 position us to deliver EPS growth in FY09.”
Schultz continued, “We appear to be more resilient than many other premium brands. And while we cannot call isolated signs of improving sales a trend, we are encouraged by our ability to drive increased traffic at a relatively low cost, as we did on Election Day. As we head into the holiday season and Calendar ’09, consumers are looking for value and we've been pleased with the steady progress of our Starbucks Rewards program and the enthusiastic reception to the Starbucks Gold Card. I am optimistic we are well positioned to weather this challenging economic environment.”
Fourth Quarter Fiscal 2008 Summary
Consolidated net revenues increased 3 percent to $2.5 billion for the fourth quarter of 2008, compared to $2.4 billion for the fourth quarter of 2007. For the 13-week period ended September 28, 2008, Starbucks reported net income of $5.4 million, which included $105.1 million of...