Consolidated net revenues increased 5.5% year-over-year to $9.92 billion in the first quarter, reflecting higher sales in company-operated stores. The top line exceeded estimates. Net revenues for the North America segment increased 3% to $7.3 billion. Global comparable store sales rose 4%, aided by a 3% increase in comparable transactions and a 1% rise in average ticket.
Net earnings attributable to Starbucks plunged 62% to $293.3 million in Q1 from $780.8 million in the prior-year quarter. On a per-share basis, earnings dropped to $0.26 from $0.69 last year. On an adjusted basis, earnings decreased to $0.56 per share in Q1 from $0.69 per share a year earlier, missing estimates.
“Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working, and we believe we’re ahead of schedule. It’s great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning,” said Brian Niccol, chief executive officer of Starbucks.