Starbucks has reported better-than-expected sales for its fiscal second quarter, driven by a strong rebound in its home market and a focus on improving customer service. Global same-store sales rose 6.2 per cent in the three months to March, surpassing the 4 per cent increase forecast by Wall Street analysts.
In the United States, same-store sales jumped 7 per cent, reflecting the success of initiatives such as increased staffing during peak hours, better sequencing of mobile and in-store orders, and store redesigns aimed at creating a more inviting atmosphere. The coffee chain has also been working to foster friendlier service as part of a broader turnaround strategy.
Chief executive Brian Niccol described the quarter as “the turn in our turnaround”, adding that “more customers are getting back to Starbucks as we deliver the best of Starbucks more consistently.” The company’s revenue rose 9 per cent to $9.5bn, ahead of the $9.2bn predicted by analysts.
Adjusted earnings per share came in at 50 cents, beating forecasts of 43 cents. The results follow a period of restructuring, during which Starbucks closed hundreds of stores across North America and Europe and cut at least 2,000 non-retail jobs to reinvest savings into its revitalisation.
