Starbucks Corporation (NASDAQ: SBUX) reported its financial results of its 13-week fiscal first quarter on Thursday, its shares fell 5% on Friday, reflecting weak holiday-quarter sales. According to the report, Global and U.S. comparable store sales of Starbucks went up 2%, which is below the management’s expectations.
However, the situation may not be as bad as investors think. Net revenues of the company are up 6% to a record $6 Billion. Moreover, it is noticeable that the net revenues in China’s market went up 30% as comparable store sales rose 6%, driven by an increase in transactions. According to Kevin Johnson, president and CEO of Starbucks Corp., “Today, we have two powerful, independent but complementary engines driving our global growth, the U.S. and China. Our work to streamline the company is sharpening our focus on our core operating priorities.”
Scott Maw, the CFO of Starbucks Corporation, said “we are laser-focused on accelerating growth in China and driving improvement across the U.S. business as we move back into and through the back half of the year, and remain committed to delivering in the long-term targets we announced last quarter.”