Starbucks profit up 20%
Seattle — Starbucks on Wednesday reported that its second-quarter profit rose 20% as more customers visited its stores, and it raised its earnings forecast for the year.
The company said it earned $261.6 million for the quarter ended April 3, up from $217.3 million a year earlier. Revenue rose nearly 10% to $2.79 billion.
CEO Howard Schultz said on a conference call with investors Wednesday that the results are especially gratifying, given the "formidable economic and operating headwinds that continue to confront global businesses."
Starbucks said the underlying health of its business has never been better, and strong sales, customer traffic and satisfaction trends during the period led it to raise its full-year forecast.
Starbucks said commodity cost increases are bigger than previously anticipated and will cut its earnings for the year by 22 cents, rather than the 20 cents per share it estimated in January. Starbucks is one of many food and beverage companies coping with higher costs for fuel, dairy, coffee and other goods.
Cabela’s Q1 profit up on strong sales
Sidney, Neb. — Cabela’s said Thursday that stronger revenue helped its fiscal first-quarter profit more than double from results weighed down by a hefty charge a year ago.
The reported net income of $17.8 million in the three months ended April 2, up from $8.1 million a year earlier.
The year-ago period included an $11.9 million charge related to a 2009 FDIC compliance examination.
Revenue increased 5% to $586.7 million, from $559.6 million. Same-store sales rose 8.9%.
In a statement, CEO Tommy Millner sales rose at each of the company’s 29 stores open at least a year — the first time this has happened at the company.
CoStar to acquire LoopNet
Washington, D.C. — Commercial real estate information company CoStar Group has signed a definitive agreement to acquire LoopNet, the leading online commercial real estate marketplace.
“CoStar revolutionized how the industry researches commercial real estate and LoopNet revolutionized the way the industry markets commercial real estate," said Andrew C. Florance, president and CEO, CoStar. "We expect the combination of our companies to give the $11 trillion commercial real estate market the full benefit of the Internet."