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Starbucks Hopes China’s Reopening Will Boost Sales

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Starbucks Hopes China's Reopening Will Boost Sales

(CTN News) – In its latest earnings report, Starbucks (SBUX) is expected to post an increase in income and earnings per share, while sales are forecast to decline from the previous quarter’s record.

It has been predicted by Visible Alpha that Starbucks is going to post earnings per share for the fiscal year of $0.65, which is up from $0.58 a year ago.

It is also expected to report a net income of $750 million, a substantial increase compared to the $750 million it reported a year ago.

As per estimates, North American revenue is expected to reach $6.15 billion in the current fiscal year, an increase of $5.44 billion from the previous year.

As a result, the international revenue of the company increased from $1.7 billion for the same period last year to $1.76 billion for this period, up from $1.7 billion for the same period this year.

Coffee chain Starbucks is going to release its second-quarter earnings at 2 p.m. on Tuesday, Pacific Time (PT).

There was a good quarter for Starbucks’ earnings in the previous quarter, with record sales of $8.7 billion, an increase of 8% year on year, or 12% without the impact of foreign exchange headwinds. In North America, there was a growth rate of 10% and globally, there was a growth rate of 5%.

The first quarter earnings of the company are even more impressive when you take into account the Chinese lockdowns, which were blamed for knocking $0.06 off the company’s first quarter earnings per share.

As a result of China’s tightening of its security measures in January, the company will be looking for a boost this quarter.

The second quarter earnings of Starbucks are likely to be affected by a post-Christmas hangover even though they bounced back from a tough retail climate at the end of 2022.

There was a record amount of $3.3 billion loaded on Starbucks gift cards in the U.S., which will have inflated previous figures by quite a bit.

As a result of the China boost, 30 million people had active Starbucks Rewards memberships in the United States, which could assist in cushioning the blow.

As a percentage of S&P 500, Starbucks shares have increased by about 50% over the last year, outperforming the Consumer Discretionary Index, which has declined by 19% during the same period.

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Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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