Starbucks lower after global comp decelerates to +6%

|About: Starbucks Corporation (SBUX)|By:, SA News Editor

Starbucks (NASDAQ:SBUX) reports global comparable store sales increased 6% in FQ2, a deceleration from the 8% comp recorded in FQ1.

Traffic was 2% higher at Starbucks stores during the quarter, while the average ticket was up 4%.

Comp growth by region: Americas and U.S. +7%; EMEA +1%; China/Asia Pacific +3%.

Starbucks likely shed some doubters on its performance in China with an 18% jump in revenue. Europe was more challenging with a higher mix of licensed store and painful F/X conversion tugging at sales.

The company's operating margin jumped 60 bps to 17.6% as some costs were leveraged lower off of higher sales levels.

Starbucks expects to open 1,800 store on a net basis this fiscal year.

FY16 EPS guidance is set by the coffee giant at $1.88 to $1.89 vs. $1.89 consensus. FQ3 EPS of $0.48 to $0.49 expected vs. $0.49 consensus.

SBUX -4.52% AH to $57.91.

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