FINANCE

Starbucks: Record Q3 prompts increased store openings

BY Katherine Boccaccio

Seattle — Starbucks Corp. reported Thursday that it scored record results in the quarter ended July 3, prompting the retailer to accelerate its 2012 new store opening targets to 800 net new stores globally.

Starbucks grew profits 34% in the third quarter, to $279 million from $208 million in the year-ago period. Sales rose 12% to $2.9 billion from $2.6 billion, topping Wall Street estimates.

Same-store sales globally surged 8%, buoyed by a 6% increase in traffic and a 2% increase in average ticket.

“These results demonstrate the power, and the extraordinary global potential, of our unique new business model,” said Howard Schultz, chairman, president and CEO. “Starbucks has never been healthier, more connected to our customers and partners, or better positioned to go after the tremendous business opportunities that lie ahead.”

The company is targeting 600 net new stores for fiscal 2011 — 100 in the United States and 500 internationally, exclusive of Borders store closures. Its 800 planned stores in 2012 include 200 net new stores in the United States and 600 outside the United States. It is targeting 10% revenue growth in 2012.

Earlier in July, Starbucks announced a new leadership structure to accelerate global growth in fiscal 2012 and beyond, moving to a three-region organizational structure for its retail businesses: the Americas, China and Asia Pacific, and EMEA.

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FINANCE

Vitamin Shoppe’s Q2 earnings leap 64%, to open 48 stores

BY Staff Writer

North Bergen, N.J. — Vitamin Shoppe reported Thursday that net income in the second quarter increased 64% to $11.95 million, compared with $7.3 million in the year-ago period. The retailer cited strong sales both in-store and online for its improved performance.

Revenue rose 12.3% to $215.9 million, topping Wall Street expectations. Same-store sales increased 8% in the quarter.

Vitamin Shoppe said it is on track to open 48 new stores in the fiscal year.

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Whole profits at Whole Foods in Q3

BY CSA STAFF

AUSTIN — While the White House may be working with several retailers to combat so-called food deserts, those who can afford to spend more on their grocery bill are doing just that, helping to drive up profits at Whole Foods.

The company reported that its third-quarter profit rose 35% to $88.5 million,compared with $65.7 million in the year-earlier period.

Revenue rose 11% to $2.4 billion, meeting Wall Street expectations, and same-store sales rose 8.4%.

With its strong showing, particularly as its traditional grocer peers struggle with shrinking margins and curbed spending, Whole Foods raised its full-year forecast and said it would add stores in 2011. On the heels of seven store openings in the third quarter, including three relocations, and two openings so far in the fourth quarter, the grocer said it expects to add three additional new stores in the fourth quarter and is on track to open another eight in 2012.

"We are continuing to gain market share at a faster rate than most public food retailers as reflected in our 8.5% comparable store sales growth year to date,” said Walter Robb, co-CEO of the company. "We see a new era of possibility for Whole Foods Market as customers increasingly embrace healthier lifestyles, and we look forward to accelerating our growth in the coming years."

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