AIRLINK 193.50 Decreased By ▼ -1.51 (-0.77%)
BOP 9.64 Decreased By ▼ -0.13 (-1.33%)
CNERGY 7.53 Increased By ▲ 0.17 (2.31%)
FCCL 37.70 Decreased By ▼ -1.07 (-2.76%)
FFL 15.60 Increased By ▲ 0.01 (0.06%)
FLYNG 25.59 Increased By ▲ 0.18 (0.71%)
HUBC 127.07 Decreased By ▼ -1.55 (-1.21%)
HUMNL 13.50 Decreased By ▼ -0.31 (-2.24%)
KEL 4.58 Increased By ▲ 0.09 (2%)
KOSM 6.10 Decreased By ▼ -0.20 (-3.17%)
MLCF 43.96 Decreased By ▼ -0.83 (-1.85%)
OGDC 203.24 Decreased By ▼ -0.36 (-0.18%)
PACE 6.40 Decreased By ▼ -0.02 (-0.31%)
PAEL 40.98 Decreased By ▼ -0.15 (-0.36%)
PIAHCLA 17.49 Increased By ▲ 0.77 (4.61%)
PIBTL 7.66 Decreased By ▼ -0.02 (-0.26%)
POWER 9.08 Increased By ▲ 0.04 (0.44%)
PPL 174.25 Increased By ▲ 0.34 (0.2%)
PRL 38.07 Decreased By ▼ -1.01 (-2.58%)
PTC 24.07 Decreased By ▼ -0.97 (-3.87%)
SEARL 107.24 Decreased By ▼ -1.82 (-1.67%)
SILK 0.97 Decreased By ▼ -0.02 (-2.02%)
SSGC 36.40 Decreased By ▼ -1.74 (-4.56%)
SYM 19.04 Decreased By ▼ -0.45 (-2.31%)
TELE 8.24 Decreased By ▼ -0.12 (-1.44%)
TPLP 11.78 Decreased By ▼ -0.35 (-2.89%)
TRG 64.88 Increased By ▲ 0.09 (0.14%)
WAVESAPP 11.63 Increased By ▲ 1.06 (10.03%)
WTL 1.68 Decreased By ▼ -0.01 (-0.59%)
YOUW 3.85 Decreased By ▼ -0.02 (-0.52%)
BR100 11,765 Decreased By -123.2 (-1.04%)
BR30 34,986 Decreased By -233.6 (-0.66%)
KSE100 111,487 Decreased By -543 (-0.48%)
KSE30 34,934 Decreased By -201.5 (-0.57%)

NEW YORK: Starbucks reported record quarterly revenues Thursday behind a strong US performance, but weak China results and increased expenses pinched profits.

Comparable sales surged at the coffee chain’s North American shops, lifted by a 10 percent increase in average ticket size following price hikes and a slight uptick in comparable transactions.

The results are the latest from a big US consumer-oriented company to illustrate continued robust consumer demand despite inflation.

Howard Schultz, interim chief executive, attributed the strong US performance to “reinvention” investments that have included boosts to employee compensation and store revamps as the chain confronts a unionization drive in its home market.

But the added spending on these areas — coupled with increased commodity and supply chain costs — dragged down Starbucks’ bottom line.

Profits for the quarter ending October 2 were $878.3 million, down 50 percent from the year-ago period, while revenues climbed 3.3 percent to $8.4 billion.

The company continued to see meager results in China amid waves of Covid-19 restrictions in the country. Comparable sales dropped 16 percent in the period in the market.

With the coronavirus again on the rise in China, “we anticipate the current Covid-related uncertainty to continue,” Schultz told analysts on a conference call.

“While our long-term aspirations for China remain undiminished, we expect the recovery of our business in the country to be nonlinear,” Schultz said.

Comments

Comments are closed.