Starbucks Corporation (NASDAQ:SBUX) reported a strong third quarter boosted by Asian sales Thursday afternoon, with profits jumping 25 percent and earnings per share shooting up 28 percent, beating out analyst expectations.
The Seattle-based coffee shop chain said net revenues rose by 13 percent to $3.7 billion. Global store sales grew 8 percent, increasing in all its key regions. Operating income, or profit, came in at $615 million, more than the expected $403 million, while EPS measured $0.55 per share, better than an expected $0.531.
Surprisingly, the coffee giant managed to overcome lackluster expectations for its sales in China and Europe, two areas suffering from recent economic slowdowns.
In China and the Asia-Pacific, sales grew by 9 percent, as customer traffic doubled from the second quarter. Europe saw a slight sales growth of 2 percent, up from the 2 percent sales decline in the previous quarter.
Starbucks CEO Howard Schultz hailed the numbers as the best across-the-board results ever for the company in any third quarter, in a statement.
The company also provided guidance for its upcoming fiscal year 2014. Starbucks looks to sustain revenue growth at 10 to 13 percent, and add 600 to 700 stores in both its Americas and China & Asia Pacific region.
In the past quarter, the company opened its first store in Vietnam in January, and has expanded its loyalty program. Analysts previously expected a strong quarter for Starbucks, on the back of sustained sales growth.
Starbucks shares rose 4.4 percent to $72.57 in after-hours trading.
Nat Rudarakanchana covers commodities and companies for the International Business Times. He is especially interested in precious metals, the food and drink industry, and...