Starbucks blames profit drop on changes to accounting

24 November, 2006
Page 4 
Starbucks has blamed a 6% drop in international profits for the three months to 31 October on new accounting measures.
The group announced profits of $117m (£62m) in the quarter, compared to $124m during the same period in 2005.Starbucks said its revenue had risen 22% to $7.8bn for the full year, leading to overall earnings of $564mn, an increase of 14%. Sales at outlets that had been open for at least a year increased by 5%.Jim Donald, president and chief executive, said the fall in profits was due to two new accounting measures. Starbucks delivered "strong operating results", opening 2,199 stores worldwide, he said."We opened a record number of new stores around the world, which contributed to strong top line growth, and we enhanced and expanded our product offerings." There are over 11,000 Starbucks outlets worldwide, including 520 outlets in the UK and Ireland.



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