12.11.04

12.11.2004: Meldung: Starbucks Corporation: Record Fourth Quarter and Fiscal Year End 2004 Results

CORRECTING and REPLACING Starbucks Announces Record Fourth Quarter and Fiscal Year End 2004 Results
Wednesday November 10, 10:32 pm ET
Consolidated Net Revenues Exceed $5 Billion for the Year

SEATTLE - Nov. 10, 2004--In BW5818 issued Nov. 10, 2004: In the table immediately following the paragraph with the subheading "Unallocated Corporate," the heading of the first column should read: 14 Weeks Ended October 3, 2004 (sted 14 Weeks Ended October 3, 2003). Also, in the fifth and sixth tables immediately following the paragraph with the subheading "Unallocated Corporate," the heading of the first column should read: 53 Weeks Ended October 3, 2004 (sted 53 Weeks Ended October 2004).


STARBUCKS ANNOUNCES RECORD FOURTH QUARTER AND FISCAL YEAR END 2004 RESULTS; CONSOLIDATED NET REVENUES EXCEED $5 BILLION FOR THE YEAR

Fiscal 2004 Marks First Year of Double Digit Comparable Store Sales Increase in More than a Decade; Innovation & Continued Rapid Growth Lead to Strong FY 2004 Performance & Bode Well for Fiscal 2005

Starbucks Corporation (Nasdaq:SBUX - News) today announced revenues and earnings for its fiscal fourth quarter and fiscal year ended October 3, 2004, which included 14 weeks and 53 weeks, respectively. The fiscal fourth quarter and fiscal year ended September 28, 2003, included 13 weeks and 52 weeks, respectively.

For the 14 weeks ended October 3, 2004, consolidated net revenues increased 34 percent to $1.5 billion from $1.1 billion for the corresponding period of fiscal 2003. Net revenues increased 25 percent when calculated on a comparative 13-week basis for both fiscal 2004 and 2003. Net earnings for the 14 weeks ended October 3, 2004, increased 49 percent to $103 million from $70 million for the corresponding 13-week period of fiscal 2003. Diluted earnings per share were $0.25 for the 14 weeks ended October 3, 2004, compared to $0.17 per share for the corresponding 13-week period of fiscal 2003.

For the 53-week fiscal year ended October 3, 2004, consolidated net revenues increased 30 percent to $5.3 billion from $4.1 billion for fiscal 2003. Net revenues increased 27 percent when calculated on a comparative 52-week basis for both fiscal 2004 and 2003. Net earnings for fiscal 2004 increased 46 percent to $392 million from $268 million for fiscal 2003. Diluted earnings per share were $0.95 for fiscal 2004, compared to $0.67 per share for fiscal 2003. For the 14 weeks and 53 weeks ended October 3, 2004, diluted earnings per share included an estimated $0.03 per share benefit from the extra week in fiscal September 2004.

"Fiscal 2004 has been an amazing year of outstanding performance throughout our business," stated Howard Schultz, chairman. "Our aggressive global store expansion, innovation ranging from food and beverage to music and execution of new and expanded agreements for licensing, grocery and foodservice all contributed to our results. We look forward to building on this momentum in fiscal 2005."

"We achieved remarkable financial results during fiscal 2004," stated Orin Smith, president and ceo. "In addition to posting the first year of double digit comparable store sales increase in more than a decade - a particularly notable accomplishment when considering the size of our Company-operated business, we also reported earnings per share of $0.95 for fiscal 2004, a full $0.10 above the high end of our original target announced in July of 2003."

"We are very excited about the upcoming holiday season and believe our comprehensive promotion will enable us to continue our strong momentum," stated Jim Donald, ceo designate. "Our stores, together with our exciting food and beverage line-up, will provide a respite for our customers during this busy season. Additionally, our promotion includes a great variety of relevant gifting options for holiday shoppers."

Consolidated Financial and Operating Summary

Company-operated retail revenues increased 33 percent to $1.2 billion for the 14 weeks ended October 3, 2004, from $913 million for the corresponding period of fiscal 2003. Excluding the impact of the extra week in 2004, Company-operated retail revenues increased 24 percent to $1.1 billion. The increase was primarily attributable to the opening of 634 new Company-operated retail stores in the last 12 months and comparable store sales growth of nine percent for the quarter. The increase in comparable store sales was due to an increase of eight percent in the number of customer transactions and a one percent increase in the average value per transaction. Comparable store sales percentages were calculated excluding the sixth week of fiscal September 2004.

Specialty revenues increased 40 percent to $235 million for the 14 weeks ended October 3, 2004, compared to $168 million for the corresponding period of fiscal 2003. Licensing revenues increased 45 percent to $165 million due to higher product sales and royalty revenues from opening 710 new licensed retail stores in the last 12 months and growth in the licensed grocery and warehouse club business. Foodservice and other revenues increased 30 percent to $70 million primarily due to growth in new and existing foodservice accounts. Excluding the impact of the extra week in 2004, total specialty revenues increased 30 percent to $218 million.

Cost of sales and related occupancy costs increased to 42.4 percent of total net revenues for the 14 weeks ended October 3, 2004, compared to 41.5 percent in the corresponding 13-week period of fiscal 2003, primarily due to higher dairy and green coffee commodity costs. The Company gained leverage from occupancy costs, which are largely fixed expenses, due to the extra sales week in fiscal September 2004.

Store operating expenses as a percentage of Company-operated retail revenues increased to 41.9 percent for the 14 weeks ended October 3, 2004, from 40.6 percent for the corresponding period of fiscal 2003, primarily due to higher payroll-related expenditures and costs for maintaining retail stores and equipment due to sustained high traffic levels.

Other operating expenses (expenses associated with the Company"s specialty operations) decreased to 18.3 percent of total specialty revenues for the 14 weeks ended October 3, 2004, compared to 22.4 percent in the corresponding period of fiscal 2003. The decrease was primarily due to leverage gained on payroll-related expenditures distributed over an expanded revenue base.

Depreciation and amortization expenses increased to $71.6 million for the 14 weeks ended October 3, 2004, compared to $62.7 million for the corresponding period of fiscal 2003. The increase was primarily due to the opening of 634 new Company-operated retail stores in the last 12 months and higher depreciation expenses associated with shortened estimated useful lives of equipment deployed in the Company"s foodservice operations. As a percentage of total net revenues, depreciation and amortization expenses decreased to 4.9 percent for the 14 weeks ended October 3, 2004, from 5.8 percent for the corresponding 13-week period of fiscal 2003, primarily due to the leverage of fixed depreciation expenses from the extra sales week in 2004.

General and administrative expenses increased to $80.5 million for the 14 weeks ended October 3, 2004, compared to $65.9 million for the corresponding period of fiscal 2003, primarily due to additional employees to support planned acceleration of retail store growth. As a percentage of total net revenues, general and administrative expenses decreased to 5.5 percent for the 14 weeks ended October 3, 2004, from 6.1 percent for the corresponding period of fiscal 2003.

Income from equity investees increased $7.1 million to $24.5 million for the 14 weeks ended October 3, 2004, from $17.4 million for the corresponding period of fiscal 2003. The increase was primarily due to volume driven operating results for the North America Coffee Partnership, which produces bottled Frappuccino® and Starbucks DoubleShot® coffee drinks, and improved profitability of Starbucks Japan.

Operating income increased 39 percent to $156.3 million for the 14 weeks ended October 3, 2004, compared to $112.4 million for the corresponding 13-week period of fiscal 2003. Operating margin increased to 10.7 percent of total net revenues for the 14 weeks ended October 3, 2004, compared to 10.4 percent for the corresponding period of fiscal 2003, primarily due to leverage gained from the additional sales week in the fourth quarter this year compared to last year.

Interest and other income increased to $2.8 million for the 14 weeks ended October 3, 2004, from $0.8 million in the corresponding period of fiscal 2003, primarily due to higher interest income earned on cash and liquid investment balances.

Income taxes for the 14 weeks ended October 3, 2004, resulted in an effective tax rate of 35.0 percent, compared to 38.5 percent in the corresponding period of fiscal 2003, and a full year 2004 effective tax rate of 37.2 percent. The lower effective tax rate was primarily due to improved operating results as fewer non-deductible losses were generated from international markets, which are in various phases of development.

Fiscal 2005 Targets

Looking ahead, Starbucks provided additional detail on current fiscal 2005 targets:

* The Company expects to open approximately 1,500 new stores on a global basis in fiscal 2005. In the United States, Starbucks plans to open approximately 550 Company-operated locations and 525 licensed locations. In International markets, Starbucks plans to open approximately 100 Company-operated stores and 325 licensed stores;
* Starbucks is targeting total net revenue growth of approximately 20 percent, excluding the impact of the 53rd week in fiscal 2004;
* As the Company stated on July 21, 2004 when introducing its fiscal 2005 targets, business performance may again result in comparable store sales growth during fiscal 2005 exceeding the Company"s longer term three to seven percent target range;
* Starbucks is targeting earnings per share of $1.12 to $1.15 for fiscal 2005, excluding any potential impact from the expensing of stock options. The earnings per share target range equates to 22 to 25 percent growth over $0.92 per share in fiscal 2004, which is the Company"s reported earnings per share adjusted for the estimated $0.03 impact of the 53rd week;
* The Company expects quarterly earnings per share growth rates to be in the 20 to 25 percent range;
* The effective tax rate is targeted to be 37.5 percent, and;
* Capital expenditures are expected to be in the range of $600 to $650 million in fiscal 2005.

The Company"s consolidated financial statements, operating segment results, and other additional information have been provided on the following pages in accordance with current period classifications, and should be reviewed in conjunction with this press release. Please refer to the Company"s Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 23, 2003, for additional information regarding reclassifications within operating expenses.

STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)

Fiscal quarter ended Fiscal quarter ended
--------------------------------------------------
Oct. 3, Sept. 28, Oct. 3, Sept. 28,
2004 2003 % 2004 2003
(14 weeks) (13 weeks) Change (14 weeks)(13 weeks)
--------------------------------------------------
As a % of total
net revenues
(in thousands, except per share data) (unless otherwise
indicated)
Net revenues: -----------------
Company-operated
retail $1,218,347 $ 913,067 33.4% 83.8% 84.5%
Specialty:
Licensing 164,761 113,970 44.6% 11.4% 10.5%
Foodservice and
other 70,189 53,977 30.0% 4.8% 5.0%
----------- ----------- ---------------
Total
specialty 234,950 167,947 39.9% 16.2% 15.5%
----------- ----------- ---------------

Total net revenues 1,453,297 1,081,014 34.4% 100.0% 100.0%

Cost of sales and
related occupancy
costs 616,120 448,960 42.4% 41.5%
Store operating
expenses 510,342 370,884 (a)41.9% (a)40.6%
Other operating
expenses 42,889 37,561 (b)18.3% (b)22.4%
Depreciation and
amortization
expenses 71,645 62,697 4.9% 5.8%
General and
administrative
expenses 80,537 65,947 5.5% 6.1%
----------- -----------
Subtotal
operating
expenses 1,321,533 986,049

Income from equity
investees 24,505 17,401 1.7% 1.6%
----------- -----------

Operating income 156,269 112,366 39.1% 10.7% 10.4%

Interest and other
income, net 2,823 772 0.2% 0.1%
----------- ----------- -----------------

Earnings before
income taxes 159,092 113,138 40.6% 10.9% 10.5%

Income taxes(c) 55,720 43,542 3.8% 4.1%
----------- ----------- -----------------

Net earnings $ 103,372 $ 69,596 48.5% 7.1% 6.4%
=========== =========== =================
Net earnings per
common share -
diluted $ 0.25 $ 0.17
=========== ===========
Weighted average
shares outstanding
- diluted 413,377 404,500
=========== ===========

(a) Calculated as a percentage of Company-operated retail revenues.

(b) Calculated as a percentage of total specialty revenues.

(c) The effective tax rates for the 14 weeks ended October 3, 2004,
and the 13 weeks ended September 28, 2003, were 35.0 percent and
38.5 percent for the respective periods.


STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)

Fiscal year ended Fiscal year ended
--------------------------------------------------
Oct. 3, Sept. 28, Oct. 3, Sept. 28,
2004 2003 % 2004 2003
(53 weeks) (52 weeks) Change (53 weeks)(52 weeks)
--------------------------------------------------
As a % of total
net revenues
(in thousands, except per share data) (unless otherwise
indicated)
------------------
Net revenues:
Company-operated
retail $4,457,378 $3,449,624 29.2% 84.2% 84.6%
Specialty:
Licensing 565,798 409,551 38.2% 10.7% 10.1%
Foodservice and
other 271,071 216,347 25.3% 5.1% 5.3%
----------- ----------- ------------------
Total
specialty 836,869 625,898 33.7% 15.8% 15.4%
----------- ----------- ------------------

Total net revenues 5,294,247 4,075,522 29.9% 100.0% 100.0%

Cost of sales and
related occupancy
costs 2,198,654 1,685,928 41.5% 41.4%
Store operating
expenses 1,790,168 1,379,574 (a) 40.2%(a) 40.0%
Other operating
expenses 171,648 141,346 (b) 20.5%(b) 22.6%
Depreciation and
amortization
expenses 280,024 237,807 5.3% 5.8%
General and
administrative
expenses 304,293 244,550 5.7% 6.0%
----------- -----------
Subtotal
operating
expenses 4,744,787 3,689,205

Income from equity
investees 60,657 38,396 1.1% 0.9%
----------- -----------
Operating
income 610,117 424,713 43.7% 11.5% 10.4%

Interest and other
income, net 14,140 11,622 0.3% 0.3%
----------- ----------- ------------------
Earnings before
income taxes 624,257 436,335 43.1% 11.8% 10.7%

Income taxes(c) 232,482 167,989 4.4% 4.1%
----------- ----------- ------------------

Net earnings $ 391,775 $ 268,346 46.0% 7.4% 6.6%
=========== =========== ==================
Net earnings per
common share -
diluted $ 0.95 $ 0.67
=========== ===========
Weighted average
shares outstanding
- diluted 411,465 401,648
=========== ===========

(a) Calculated as a percentage of Company-operated retail revenues.

(b) Calculated as a percentage of total specialty revenues.

(c) The effective tax rates for the 53 weeks ended October 3, 2004,
and the 52 weeks ended September 28, 2003, were 37.2 percent and
38.5 percent for the respective periods.


STARBUCKS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)

Oct. 3, Sept. 28,
2004 2003
----------- -----------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 299,128 $ 200,907
Short-term investments - Available-for-sale
securities 329,082 128,905
Short-term investments - Trading securities 24,799 20,199
Accounts receivable, net of allowances of
$2,231 and $4,809, respectively 131,015 114,448
Inventories 422,663 342,944
Prepaid expenses and other current assets 71,347 55,173
Deferred income taxes, net 81,240 61,453
----------- -----------
Total current assets 1,359,274 924,029

Long-term investments - Available-for-sale
securities 135,179 136,159
Equity and other investments 171,747 144,257
Property, plant and equipment, net 1,471,446 1,384,902
Other assets 85,561 52,113
Other intangible assets 26,800 24,942
Goodwill 68,950 63,344
----------- -----------

TOTAL ASSETS $3,318,957 $2,729,746
=========== ===========
LIABILITIES AND SHAREHOLDERS" EQUITY
Current liabilities:
Accounts payable $ 191,574 $ 168,984
Accrued compensation and related costs 208,927 152,608
Accrued occupancy costs 65,873 56,179
Accrued taxes 63,038 54,934
Other accrued expenses 122,245 101,800
Deferred revenue 121,377 73,476
Current portion of long-term debt 735 722
----------- -----------
Total current liabilities 773,769 608,703

Deferred income taxes, net 46,683 33,217
Long-term debt 3,618 4,354
Other long-term liabilities 8,132 1,045

Shareholders" equity:
Common stock and additional paid-in capital -
Authorized, 600,000,000 shares; issued
and outstanding, 397,405,844 and
393,692,536 shares, respectively,
(includes 1,697,100 common stock units in
both periods) 956,685 959,103
Other additional paid-in-capital 39,393 39,393
Retained earnings 1,461,458 1,069,683
Accumulated other comprehensive income 29,219 14,248
----------- -----------
Total shareholders" equity 2,486,755 2,082,427
----------- -----------

TOTAL LIABILITIES AND SHAREHOLDERS" EQUITY $3,318,957 $2,729,746
=========== ===========

STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)

Fiscal year ended
---------------------
Oct. 3, Sept. 28,
2004 2003
(53 weeks) (52 weeks)
---------- ----------
OPERATING ACTIVITIES:
Net earnings $ 391,775 $ 268,346
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 304,820 259,271
Provision for impairments and asset disposals 13,568 7,784
Deferred income taxes, net (3,073) (5,932)
Equity in income of investees (34,987) (22,813)
Tax benefit from exercise of non-qualified
stock options 63,405 36,590
Net amortization of premium on securities 11,603 5,996
Cash provided/(used) by changes in operating
assets and liabilities:
Inventories (77,662) (64,768)
Prepaid expenses and other current assets (16,621) (12,861)
Accounts payable 20,175 24,990
Accrued compensation and related costs 54,929 42,132
Accrued occupancy costs 8,900 4,293
Deferred revenue 47,590 30,732
Other accrued expenses 15,027 9,471
Other operating assets and liabilities (7,201) (16,784)
---------- ----------
Net cash provided by operating activities 792,248 566,447

INVESTING ACTIVITIES:
Purchase of available-for-sale securities (566,645) (323,331)
Maturity of available-for-sale securities 163,814 180,687
Sale of available-for-sale securities 190,748 88,889
Acquisitions, net of cash acquired (7,515) (69,928)
Net additions to equity, other investments and
other assets (63,146) (47,259)
Distributions from equity investees 38,328 28,966
Net additions to property, plant and equipment (386,176) (357,282)
---------- ----------
Net cash used by investing activities (630,592) (499,258)

FINANCING ACTIVITIES:
Proceeds from issuance of common stock 137,589 107,183
Principal payments on long-term debt (722) (710)
Repurchase of common stock (203,413) (75,710)
---------- ----------
Net cash provided/(used) by financing activities (66,546) 30,763

Effect of exchange rate changes on cash and cash
equivalents 3,111 3,278
---------- ----------
Net increase in cash and cash equivalents 98,221 101,230

CASH AND CASH EQUIVALENTS:
Beginning of period 200,907 99,677
---------- ----------

End of the period $ 299,128 $ 200,907
========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest $ 370 $ 265
Income taxes $ 172,759 $ 140,107


Store Data

The Company"s store data for the periods presented are as follows:

Net stores opened
during the fiscal
year ended Stores open as of
-------------------- --------------------
Oct. 3, Sept. 28,
2004 2003 Oct. 3, Sept. 28,
(53 weeks)(52 weeks) 2004 2003
-------------------- --------------------
United States:
Company-operated
Stores 514 506 4,293 3,779
Licensed Stores 417 315 1,839 1,422
-------------------- --------------------
931 821 6,132 5,201
International:
Company-operated
Stores (1) 120 99 922 802
Licensed Stores (1) 293 281 1,515 1,222
-------------------- --------------------
413 380 2,437 2,024
-------------------- --------------------

Total 1,344 1,201 8,569 7,225
==================== ====================

(1) International store data has been adjusted for the 100%
acquisition of the Singapore operations by reclassifying
historical information from Licensed Stores to Company-operated
Stores.

Segment Results

Segment information is prepared on the same basis that the Company"s management internally reviews financial information for operational decision-making purposes.

United States

United States operations ("United States") sell coffee and other beverages, whole bean coffees, complementary food, coffee brewing equipment and merchandise primarily through Company-operated retail stores. Specialty operations within the United States include retail store and other licensing operations, foodservice accounts and other initiatives related to the Company"s core businesses.

International

International operations ("International") sell coffee and other beverages, whole bean coffees, complementary food, coffee brewing equipment and merchandise through Company-operated retail stores in Canada, the United Kingdom, Thailand, Australia and Singapore, as well as through retail store licensing operations and foodservice accounts in these and more than 20 other countries. International operations are in various early stages of development and have country-specific regulatory requirements that require a more extensive support organization relative to the current levels of revenue and operating income than the United States.

Unallocated Corporate

Unallocated corporate expenses pertain to certain functions, such as executive management, accounting, administration, tax, treasury, and information technology infrastructure, which are not specifically attributable to the Company"s operating segments and include related depreciation and amortization expenses.

The tables below present, by operating segment, total net revenues,
operating income and operating income as a percentage of related
revenues, net of intersegment eliminations for the periods ended (in
thousands):
% of % of
United Inter-
14 Weeks Ended United States Inter- national
October 3, 2004 States Revenue national Revenue
--------------------------- ---------- ---------- --------- ----------
Net revenues:
Company-operated retail $ 1,030,195 84.1 % $188,152 82.2 %
Specialty:
Licensing 129,351 10.6 35,410 15.5
Foodservice and other 64,945 5.3 5,244 2.3
------------- ----------------------------
Total specialty 194,296 15.9 40,654 17.8
------------- ----------------------------
Total net revenues 1,224,491 100.0 228,806 100.0

Cost of sales and related
occupancy costs 500,161 40.8 115,959 50.7
Store operating expenses 440,041 42.7 (1) 70,301 37.4 (1)
Other operating expenses 35,442 18.2 (2) 7,447 18.3 (2)
Depreciation and
amortization expenses 51,711 4.2 12,043 5.3
General and administrative
expenses 24,960 2.0 11,692 5.1

Income from equity
investees 15,806 1.3 8,699 3.8
------------- ----------------------------
Operating income/(loss) $ 187,982 15.4 % $ 20,063 8.8 %
============= =================== ========


% of
14 Weeks Ended Unallocated Total
October 3, 2004 Corporate Net Revenues Consolidated
----------------------------------------------------- ---------------
Net revenues:
Company-operated retail $ - - % $1,218,347
Specialty:
Licensing - - 164,761
Foodservice and other - - 70,189
----------- --------- -----------
Total specialty - - 234,950
----------- --------- -----------
Total net revenues - - 1,453,297

Cost of sales and related
occupancy costs - - 616,120
Store operating expenses - - 510,342
Other operating expenses - - 42,889
Depreciation and
amortization expenses 7,891 0.6 71,645
General and administrative
expenses 43,885 3.0 80,537

Income from equity
investees - - 24,505
----------- --------- -----------
Operating income/(loss) $ (51,776) (3.6)% $ 156,269
=========== ========= ===========

% of % of
United Inter-
13 Weeks Ended United States Inter- national
September 28, 2003 States Revenue national Revenue
--------------------------- ---------- ---------- --------- ----------
Net revenues:
Company-operated retail $ 779,404 84.9 % $133,663 82.0 %
Specialty:
Licensing 87,269 9.5 26,701 16.4
Foodservice and other 51,417 5.6 2,560 1.6
---------- ---------- --------- ----------
Total specialty 138,686 15.1 29,261 18.0
---------- ---------- --------- ----------
Total net revenues 918,090 100.0 162,924 100.0

Cost of sales and related
occupancy costs 366,045 39.9 82,915 50.9
Store operating expenses 321,313 41.2 (1) 49,571 37.1 (1)
Other operating expenses 35,380 25.5 (2) 2,181 7.5 (2)
Depreciation and
amortization expenses 43,836 4.8 10,398 6.4
General and administrative
expenses 11,653 1.3 11,026 6.8

Income from equity
investees 12,591 1.4 4,810 3.0
---------- ---------- --------- ----------
Operating income/(loss) $ 152,454 16.6 % $ 11,643 7.1 %
========== ========== ========= ==========

% of
13 Weeks Ended Unallocated Total
September 28, 2003 Corporate Net Revenues Consolidated
----------------------------------------------------- ---------------
Net revenues:
Company-operated retail $ - - % $ 913,067
Specialty:
Licensing - - 113,970
Foodservice and other - - 53,977
-------------------------- ---------------
Total specialty - - 167,947
-------------------------- ---------------
Total net revenues - - 1,081,014

Cost of sales and related
occupancy costs - - 448,960
Store operating expenses - - 370,884
Other operating expenses - - 37,561
Depreciation and
amortization expenses 8,463 0.8 62,697
General and administrative
expenses 43,268 4.0 65,947

Income from equity
investees - - 17,401
-------------------------- ---------------
Operating income/(loss) $ (51,731) (4.8)% $ 112,366
========================== ===============

(1) Shown as a percentage of related Company-operated retail revenues.

(2) Shown as a percentage of related total specialty revenues.


The tables below present, by operating segment, total net revenues,
operating income and operating income as a percentage of related
revenues, net of intersegment eliminations for the periods ended (in
thousands):

% of % of
United Inter-
53 Weeks Ended United States Inter- national
October 3, 2004 States Revenue national Revenue
--------------------------- ----------------------- ------------------
Net revenues:
Company-operated retail $ 3,800,367 84.6 % $657,011 81.8 %
Specialty:
Licensing 436,981 9.7 128,817 16.0
Foodservice and other 253,502 5.7 17,569 2.2
----------------------- ------------------
Total specialty 690,483 15.4 146,386 18.2
----------------------- ------------------
Total net revenues 4,490,850 100.0 803,397 100.0

Cost of sales and related
occupancy costs 1,789,502 39.8 409,152 50.9
Store operating expenses 1,546,871 40.7 (1) 243,297 37.0 (1)
Other operating expenses 144,853 21.0 (2) 26,795 18.3 (2)
Depreciation and
amortization expenses 201,703 4.5 45,783 5.7
General and administrative
expenses 80,221 1.8 48,206 6.0

Income from equity
investees 37,453 0.8 23,204 2.9
----------------------- ------------------
Operating income/(loss) $ 765,153 17.0 % $ 53,368 6.6 %
======================= ==================


% of
53 Weeks Ended Unallocated Total
October 3, 2004 Corporate Net Revenues Consolidated
------------------------------------------------------ ---------------
Net revenues:
Company-operated retail $ - - % $ 4,457,378
Specialty:
Licensing - - 565,798
Foodservice and other - - 271,071
--------------------------- ---------------
Total specialty - - 836,869
--------------------------- ---------------
Total net revenues - - 5,294,247

Cost of sales and related
occupancy costs - - 2,198,654
Store operating expenses - - 1,790,168
Other operating expenses - - 171,648
Depreciation and
amortization expenses 32,538 0.6 280,024
General and administrative
expenses 175,866 3.3 304,293

Income from equity
investees - - 60,657
--------------------------- ---------------
Operating income/(loss) $ (208,404) (3.9) % $ 610,117
=========================== ===============

% of % of
United Inter-
52 Weeks Ended United States Inter- national
September 28, 2003 States Revenue national Revenue
--------------------------- ----------- --------- ------------------
Net revenues:
Company-operated retail $2,965,618 85.4 % $484,006 80.3 %
Specialty:
Licensing 301,175 8.7 108,376 18.0
Foodservice and other 205,659 5.9 10,688 1.7
----------- --------- ------------------
Total specialty 506,834 14.6 119,064 19.7
----------- --------- ------------------
Total net revenues 3,472,452 100.0 603,070 100.0

Cost of sales and related
occupancy costs 1,363,267 39.3 322,661 53.5
Store operating expenses 1,199,020 40.4 (1) 180,554 37.3 (1)
Other operating expenses 119,960 23.7 (2) 21,386 18.0 (2)
Depreciation and
amortization expenses 167,138 4.8 38,563 6.4
General and administrative
expenses 45,007 1.3 44,352 7.4

Income from equity
investees 28,484 0.8 9,912 1.6
----------- --------- ------------------
Operating income/(loss) $ 606,544 17.5 % $ 5,466 0.9 %
=========== ========= ==================


% of
52 Weeks Ended Unallocated Total
September 28, 2003 Corporate Net Revenues Consolidated
--------------------------------------------------------------------
Net revenues:
Company-operated retail $ - - % $ 3,449,624
Specialty:
Licensing - - 409,551
Foodservice and other - - 216,347
--------------------------- ------------
Total specialty - - 625,898
--------------------------- ------------
Total net revenues - - 4,075,522

Cost of sales and related
occupancy costs - - 1,685,928
Store operating expenses - - 1,379,574
Other operating expenses - - 141,346
Depreciation and
amortization expenses 32,106 0.8 237,807
General and administrative
expenses 155,191 3.8 244,550

Income from equity
investees - - 38,396
--------------------------- ------------
Operating income/(loss) $ (187,297) (4.6) % $ 424,713
=========================== ============

(1) Shown as a percentage of related Company-operated retail revenues.

(2) Shown as a percentage of related total specialty revenues.

United States

United States total net revenues increased by $306 million, or 33 percent, to $1.2 billion for the 14 weeks ended October 3, 2004, compared to $918 million for the corresponding 13-week period of fiscal 2003. Excluding the impact of the extra week in 2004, United States total net revenues increased 24 percent to $1.1 billion. Company-operated retail revenues increased $251 million, or 32 percent, to $1.0 billion for the 14 weeks ended October 3, 2004, compared to $779 million for the corresponding period of fiscal 2003, primarily due to the opening of 514 new Company-operated retail stores in the last 12 months and comparable store sales growth of nine percent. The increase in comparable store sales was due to an eight percent increase in the number of customer transactions and a one percent increase in the average dollar value per transaction. Comparable store sales percentages were calculated excluding the sixth week of fiscal September 2004.

Total United States specialty revenues increased $56 million, or 40 percent, to $194 million for the 14 weeks ended October 3, 2004, compared to $139 million in the corresponding period of fiscal 2003. Licensing revenues increased $42 million, or 48 percent, to $129 million from $87 million in fiscal 2003. This increase was primarily due to volume driven growth in the licensed grocery and warehouse club business as a result of expanded agreements with Kraft including the addition of six new Starbucks coffees, along with a selection of Tazo teas. In addition, product sales and royalty revenues increased as a result of opening 417 new licensed retail stores in the last 12 months. Foodservice and other revenues increased $14 million, or 26 percent, to $65 million from $51 million in fiscal 2003, due to growth in new and existing foodservice accounts.

United States operating income increased 23 percent to $188 million for the 14 weeks ended October 3, 2004, from $152 million for the corresponding period of fiscal 2003. Operating margin decreased to 15.4 percent of related revenues from 16.6 percent in the corresponding period of fiscal 2003. This was primarily due to higher payroll-related expenditures to support the Company"s planned acceleration of retail store growth, as well as higher dairy and green coffee commodity costs, partially offset by leverage gained on fixed costs distributed over an expanded revenue base.

International

International total net revenues increased by $66 million, or 40 percent, to $229 million for the 14 weeks ended October 3, 2004, compared to $163 million for the corresponding period of fiscal 2003. Excluding the impact of the extra week in 2004, international total net revenues increased 31 percent to $213 million. Company-operated retail revenues increased by $54 million, or 41 percent, to $188 million for the 14 weeks ended October 3, 2004, compared to $134 million for the corresponding period of fiscal 2003. The increase was primarily due to the opening of 120 new Company-operated retail stores in the last 12 months, the weakening of the United States dollar against both the British pound sterling and Canadian dollar and comparable store sales growth of five percent. The increase in comparable store sales resulted from a four percent increase in the number of customer transactions and a one percent increase in the average value per transaction.

Total international specialty revenues increased $11 million, or 39 percent, to $41 million for the 14 weeks ended October 3, 2004, compared to $29 million in the corresponding period of fiscal 2003. The increase was primarily due to higher product sales and royalty revenues from opening 293 new licensed retail stores in the last 12 months.

International operating income increased to $20 million for the 14 weeks ended October 3, 2004, compared to $12 million in the corresponding period of fiscal 2003. Operating margin increased to 8.8 percent of related revenues from 7.1 percent in the corresponding period of fiscal 2003, primarily due to leverage gained on fixed costs distributed over an expanded revenue base. Excluding Canadian operations, operating income increased to $10 million for the 14 weeks ended October 3, 2004, from $5 million in the corresponding period of fiscal 2003.

Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 8,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. In addition to its retail operations, the Company produces and sells bottled Frappuccino® coffee drinks, Starbucks DoubleShot® coffee drink, and a line of superpremium ice creams through its joint venture partnerships. The Company"s brand portfolio provides a wide variety of consumer products. Tazo Tea"s line of innovative superpremium teas and Hear Music"s exceptional compact discs enhance the Starbucks Experience through best-of-class products. The Seattle"s Best Coffee® and Torrefazione Italia® Coffee brands enable Starbucks to appeal to a broader consumer base by offering an alternative variety of coffee flavor profiles.

Contact:

Starbucks Corporation
Mary Ellen Fukuhara, 206-318-4025 (Investor Relations)
Audrey Lincoff, 206-447-7950 ext. 52690 (Media)

Source: Starbucks Corporation
Nach oben scrollen
ECOreporter Journalistenpreise
Anmelden
x