Starbucks Corporation has reported record 2Q revenues despite a significant decrease in sales in China due to the country’s pandemic lockdowns.
For its fiscal second quarter ending April 3, 2022, the Seattle-based coffee giant reported revenue in line with analyst expectations of $7.6 billion, compared to $6.7 billion for the same quarter in 2021.
Profits for the quarter were $674.5 million or $0.58 per share, up from $659.4 million or $0.56 per share for the same period in 2021, which was also in line with analyst expectations.
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The impressive revenue figures came despite government mandated lockdowns in China, where the company reported a comparable store sale decrease of 23% in the country.
According to Bloomberg estimates, the coffee chain’s sales were expected to drop 6.5% due to China’s pandemic-related shutdowns.
However, the company reported a 12% increase in North America comparable store sales, with revenue reaching $5.5 billion in 2Q compared to $4.6 billion in the same quarter last year.
Starbucks interim CEO Howard Schultz said the company had a single-minded focus on enhancing its core business in the United States through its partner, customer and store experiences.
“Given record demand and changes in customer behavior we are accelerating our store growth plans, primarily adding high-returning drive-thrus, and accelerating renovation programs so we can better meet demand and serve our customers where they are,” Schultz said.
Shortly after releasing its 2Q earnings, Starbucks stock was trading at about $76.40 per share, up 2.8% in after hours trading.
Contact Emily at emily.jarvie@proactiveinvestors.com
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