Starbucks Q1 profit up 10%
Seattle — Starbucks Corp. reported that its fiscal first-quarter profit rose 10% for the quarter ended Jan. 1, 2012. But the company issued a modest forecast for the year that was slightly below Wall Street expectation, citing ongoing struggles with higher costs for coffee beans, dairy products and other ingredients.
Starbucks said revenue grew 16% to $3.44 billion with growth from all its business lines. It was the largest quarterly gain since 2007. It attracted new customers by adding stores in China and Morocco, upgrading locations in the United States and rolling out single-serve coffee and other new items at grocery stores. Same-store sales were up 9%.
"Our first quarter performance represents the highest quarterly earnings in the history of the company, and is a testament to the hard work and commitment of our 200,000 partners (employees) around the world. Starbucks is firing on all cylinders and taking full advantage of the many global opportunities that lie ahead," CEO Howard Schultz said in a statement.
Starbucks added 241 new stores during the quarter. It now operates 17,244 stores worldwide, with plans to open another 800 in the coming year.
Lowe’s board looks to Dollar General leadership
MOORESVILLE, N.C. — Lowe’s has announced that Richard Dreiling has joined its board of directors. He will serve on the board’s audit and governance committees. The announcement brings Lowe’s board of directors to 12 members, 11 of whom are independent.
Dreiling is chairman and CEO of Dollar General, a position he has held since 2008. He led Dollar General’s re-emergence as a public company in 2009 through a successful initial public offering on the New York Stock Exchange. Dreiling has extensive retail experience, having served as chairman and CEO of Duane Reade Holdings Inc.; EVP and COO of Longs Drug Stores Corp.; EVP marketing, manufacturing and distribution for Safeway Inc.; and president of Vons, a food and drug division of Safeway in Southern California.
Dollar General benefitted greatly from a more cautious consumer environment in 2011, and is on track to continue that success this year. Lowe’s will no doubt hope it can capture some of Dreiling’s success.
Dreiling serves as vice chairman of the Retail Industry Leaders Association (RILA), and chairman of the Monroe Carell Jr. Children’s Hospital at Vanderbilt University. In 2011, he was named “Retailer of the Year” by Mass Market Retailer. Dreiling earned a bachelor’s degree in industrial relations from Rockhurst University in Kansas City, Mo.
“Rick has a tremendous range of retail and executive management experience from his years of working with some of the nation’s top retail companies,” said Robert A. Niblock, Lowe’s chairman, president and CEO. “He is a thoughtful leader who will be an outstanding complement to Lowe’s board of directors.”
Are you a mover and shaker?
If you are a shopping center owner or manager, I’m talking to you! It’s that time of year again – when Chain Store Age begins collecting data to publish our annual report on America’s top developers and fastest-growing acquirers and third-party managers.
Results of the survey, which is now in its 23rd year, are published in the April/May edition of Chain Store Age, with bonus distribution to the International Council of Shopping Centers’ RECon show in Las Vegas in late May.
If you’ve already received your surveys via email and are working on them, ignore me. But, if you didn’t get a copy of the three individual surveys, email me at [email protected] and I’ll send them to you right away! Deadline for submission is Feb. 27, so don’t delay. Because this is your opportunity to be considered for one of the industry’s oldest, and most prestigious, rankings.
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