The company’s previous target for earnings for the full year had ranged from $2.06 to $2.15 per share, but was upgraded to $2.12 to $2.18 per share; a substantial increase for an industry that has variously suffered to some extent from a deficit of consumer spending attributed to an end to Bush-era tax-cuts, as well delays in deliveries of federal tax returns resulting from the fiscal cliff negotiations, both of which took place early on in the quarter.
For the first quarter of 2013, Starbucks reported earnings of $390.4 million, $0.51 cents per share on revenue of $3.56 billion, against the prior year period during which the company brought in earnings of $309.9 million, or $0.40 cents per share on revenue of $3.20 billion.
An average of analyst estimates had the company earning $0.48 cents per share on revenue of $3.59 billion. Earnings fell exactly in line with expectations when excluding the company’s sale of its part of a business arrangement in Mexico.
Due to a 2 percent increase in the average amount of money made per-sale, and a 4 percent increase in traffic, comparable store sales were up 6 percent. In the U.S., the company’s biggest market, same-store sales were up 7 percent, while in Asia the same figure was up 8 percent. Europe, meanwhile, due to widespread economic uncertainty, saw a 2 percent drop in comps.
Though company executives were upbeat about the results, shares dropped 2.80 percent in late trading to $58.80, after closing the regular day on a gain of 1.12 percent at $60.50.