Starbucks pulls a profit despite internet losses
US coffee bar chain Starbucks saw profits climb 35% in its fourth quarter, but lost almost half the cash on bombing internet investments.
LONDON (Brand Republic) – US coffee bar chain Starbucks saw profits climb 35% in its fourth quarter, but lost almost half the cash on bombing internet investments.
The Seattle-based company said the $43.8m profits for the quarter were hit by losses from failing internet ventures. In August, it was forced to write off $20m from its stake in failed online furniture retailer Living.com.
Chief executive officer Orin Smith pledged to focus on the retail business and said the company had only achieved about a third of its market potential.
“Our success outside the USA has been much greater and come much earlier than we ever expected. We have also developed a sense of urgency now that others are copying us,” he said.
He added that revenues would increase up to 30% in the next year, with 1,100 new stores opening during the period.
Revenues for the quarter were $582m, up from $475m for the same period last year.
Latest jobs Jobs web feed
- Senior Account Manager - Saudi Arabia - PR MCG Associates Tax Free Package, Riyadh. KSA
- Digital Advertising Manager - High End Lifestyle Ultimate Asset £43000 - £50000 per annum + commission & excellent benefits, London
- Media Exec - Leading Media Agency - Mobile Sector Ultimate Asset £22000 - £26000 per annum + Amazing Benefits, London
- Biddable Paid Social Senior Executive - Top 10 Agency Ultimate Asset £25000 - £30000 per annum + Amazing Benefits, London
- Account handler ready for an immediate start? Freelance, Contract or Temp to Perm? Barker Graves Up to £250/day, central london
- Are you a Freelance AM, SAM or AD in a UK creative agency? We need you! Day rates £150 - £250 a day! Barker Graves Up to £250/day, Central London