Despite reporting sales declines for Q4,
"We finished the quarter with the comparable store sales decline of 4% for the month of September, a vast improvement from the approximately 65% decline we experienced at the depth of the pandemic only five months ago," he told investors Thursday during an earnings call. "Fourth-quarter comparable-store sales declined 9% in the
The chain reported GAAP earnings per share of
The new
As customers continue to adapt to work- and study-from-home lifestyles,
"We've seen
That included rolling out curbside pickup to nearly 800 U.S. company-operated locations along with plans to offer it from 2,000
"This has resulted in customer connection scores, which are well above prior-year levels," Johnson said. "
Nearly 75% of
"As we progressively restored seating in our cafes, this is notably higher than pre-COVID levels at approximately 60% of sales," Johnson said. "Moreover, our mobile order transactions continue to grow, increasing from 18% in Q2 to 24% in Q4 aided by continued improvements to our mobile app as well as an increased messaging across our marketing channels to drive further awareness introducing more customers to our mobile app which drove engagement to mobile order and benefited us operationally."
Another key driver of increased digital customer engagement was the
"Additionally, our 90-day active rewards member base increased by 3 million members in Q4 approaching pre-COVID levels at
What about
"This was in line with our expectations led by initiatives very similar to what I described in the US, outstanding customer experience, new product innovation, notably, our new tea cloud platform and continued expansion of our digital platform, but what's most remarkable about the recovery in
The chain opened 259 stores in Q4, which Johnson called an "incredible achievement" considering that he temporarily paused store development for a couple of months starting in late January.
"Our disciplined approach to store development is paying off as these new stores are off to a strong start with early returns substantially in line with pre-COVID levels," said Johnson, pointing out that the
Like in the
"As of the
Going forward
Q4 fiscal 2020 highlights
- Global comparable store sales declined 9%, driven by a 23% decrease in comparable transactions, partially offset by a 17% increase in average ticket.
Americas andU.S. comparable store sales declined 9%, driven by a 25% decrease in comparable transactions, partially offset by a 21% increase in average ticket.-
International comparable-store sales were down 10%, driven by a 15% decline in comparable transactions, partially offset by a 7% increase in average ticket;
China comparable store sales were down 3%, with comparable transactions down 7%, partially offset by a 5% .increase in average ticket; International andChina comparable store sales are inclusive of a benefit from value-added tax exemptions of approximately 2% and 4%, respectively. - The company opened 480 stores in Q4, yielding 4% year-over-year unit growth, ending the period with 32,660 stores globally, of which 51% and 49% were company-operated and licensed, respectively.
-
Stores in the
U.S. andChina comprised 61% of the company's global portfolio at the end of Q4, with 15,337 and 4,706 stores, respectively. -
Consolidated net revenues of
$6.2 billion declined 8% from the prior year primarily due to lost sales related to the COVID-19 outbreak. -
Lost sales of approximately
$1.2 billion relative to the company's expectations before the outbreak included the effects of modified operations, reduced hours, reduced customer traffic and temporary store closures. -
GAAP operating margin of 9%, down from 16.1% in the prior year primarily due to the COVID-19 outbreak, mainly sales deleverage, material investments in retail partner support and other items; GAAP operating margin was also adversely impacted by the
Americas store portfolio optimization expenses. - Non-GAAP operating margin of 13.2%, down from 17.2% in the prior year.
-
GAAP earnings per share of
33 cents , down from67 cents in the prior year primarily due to unfavorable impacts related to the COVID-19 outbreak totaling approximately -35 cents per share. -
Non-GAAP earnings per share of
$0.51 , down from$0.70 in the prior year Starbucks Rewards loyalty program 90-day active members in theU.S. increased to 19.3 million, up 10% year-over-year
Full-year fiscal 2020 highlights
- Global comparable store sales declined 14%, driven by a 22% decrease in comparable transactions, partially offset by a 10% increase in average ticket.
Americas andU.S. comparable store sales declined 12%, driven by a 21% decrease in comparable transactions, partially offset by an 11% increase in average ticket.-
International comparable-store sales were down 19%, driven by a 23% decline in comparable transactions, partially offset by a 5% increase in average ticket;
China comparable store sales declined 17%, driven by a 21% decrease in comparable transactions, slightly offset by a 5% increase in average ticket; International andChina comparable store sales are inclusive of a benefit from value-added tax exemptions of approximately 1% and 2%, respectively. Consolidated net revenues of$23.5 billion declined 11.3% from the prior year primarily due to lost sales related to the COVID-19 outbreak. -
Lost sales of approximately
$5.1 billion relative to the company's expectations before the outbreak included the effects of temporary store closures, modified operations, reduced hours and reduced customer traffic. GAAP operating margin of 6.6%, down from 15.4% in the prior year primarily due to the COVID-19 outbreak, mainly sales deleverage, material investments in retail partner support and other items. - Non-GAAP operating margin of 9.1%, down from 17.2% in the prior year.
-
GAAP earnings per share of
79 cents , down from$2.92 in the prior year primarily due to unfavorable impacts related to the COVID-19 outbreak totaling approximately -$2.01 per share(1) (2) -
Non-GAAP earnings per share of
$1.17 , down from$2.83 in the prior year.
Copyright © 2020 Networld Media. All rights reserved., source