Starbucks (SBUX) Q1 2022 earnings miss

Starbucks on Tuesday reported quarterly earnings that missed analysts’ expectations as higher costs weighed on its profits.

Here’s what the company reported for the quarter ended Jan. 2 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: 72 cents adjusted vs. 80 cents expected
• Revenue: $8.05 billion vs. $7.95 billion expected

The coffee giant reported fiscal first-quarter net income of $815.9 million, or 69 cents per share, up from $622.2 million, or 53 cents per share, a year earlier.

Excluding items, Starbucks earned 72 cents per share, falling short of the 80 cents per share expected by analysts surveyed by Refinitiv. The company cited higher-than-expected costs throughout its supply chain and more employees using sick leave.

Net sales rose 19% to $8.05 billion, topping expectations of $7.95 billion. Its global same-store sales climbed 13% in the quarter.

Despite staffing issues, the company reported U.S. same-store sales growth of 18% from a year earlier and 12% on a two-year basis. 

The holiday season typically brings consumers back to its cafes for gift cards. During the quarter, shoppers spent more than $3 billion adding or reloading money to gift cards.

Outside the U.S., Starbucks saw weaker demand for its coffee. In China, its second-largest market, same-store sales shrank by 14% in the quarter. The country reimposed travel restrictions on some cities as it faced another wave of Covid cases.