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Starbucks says 1Q sales rose only in China

By CHINA DAILY | chinadaily.com.cn | Updated: 2018-01-27 06:14
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Starbucks, the world's largest coffeehouse chain, reported disappointing first-quarter sales in all regions except in China, where same-store sales rose 6 percent.

"China grew revenues 30 percent in Q1, with the strategic acquisition of East China positioning us to accelerate our growth in the key China market,"?Kevin Johnson, president and CEO, said in a statement on Thursday.

Johnson said that mugs, tumblers and other merchandise in Starbucks stores didn't perform well during the holidays. He said the company would reconsider what merchandise it sells in the future.?

Profit soared in the quarter, but most of that gain came from the Tazo tea brand sale and Starbucks' takeover of 1,400 stores in China that were previously part of a joint venture.?

Starbucks net income of $2.25 billion, or $1.57 per share, in the three months that ended Dec 31, 2017. That compares with $751.8 million, or 51 US cents per share, in the same period a year ago.?

While same-store sales in China were strong, the China and Asia Pacific segment saw same-store sales growth of 1 percent.

In the US, same-store sales grew 2 percent driven by a 2 percent increase in the average check size. Same-store sales in Europe, the Middle East and Africa also fell short of expectations, down 1 percent in the quarter.

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