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Starbucks meets Street
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April 26, 2001: 5:44 p.m. ET
But Seattle coffee company revises its estimates for rest of year
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NEW YORK (CNNfn) - Starbucks Coffee Company, the Seattle-based coffee retailer, met analysts' expectations for earnings in the second fiscal quarter of 2001. However, because of the faltering economy, the company warned that revenue and per store sales growth would be slow for the rest of 2001.
Net income for the second fiscal quarter increased 38 percent over the same period in fiscal 2000. Profit rose to $32.2, or 16 cents a share, from $23.4 million, or 12 cents a share. The Seattle company's earnings were right on target with analysts estimates as reported by First Call.
Net revenue, too, was up for the quarter. Starbucks reported a revenue increase of 24 percent to $629 million, from $507 million, for the quarter ended April 1, 2001. Comparable store sales increased six percent as compared with the second quarter of fiscal 2000.
As previously announced, a 2-for-1 stock split will be effective after the close of trading on April 27, 2001.
Slower growth for the rest of 2001
For the rest of the year, Starbucks has revised its growth targets. On Thursday, Starbucks reduced its revenue growth target from 25 percent to 23 percent-to-25 percent to the end of its fiscal year.
 The company said it expects sales growth per store, too, to dip to "low single digits." For much of 2000, individual Starbucks stores clocked sales growth in double digits.
Systemwide retail store sales, which include net revenue for both company-operated and licensed retail stores, increased 30 percent to $679 million for the second quarter of fiscal 2001 from $521 million for the same period in fiscal 2000.
Starbucks increased its fiscal 2001 global store openings target to 1,200 from the previously targeted 1,100 new stories. Approximately 900 of the new locations will be in North America, while about 300 will be in international markets. Starbucks already has more than 4,100 retail locations in North America, Europe, the Pacific Rim and the Middle East.
"We are extremely pleased with our strong second-quarter results," said Orin Smith, Starbucks president. "We are on track to achieve our fiscal 2001 split-adjusted earnings per share target of $0.46 and are as enthusiastic as ever about the company's long-term growth potential." 
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