Starbucks’ strong US holiday offset by costs, China slump

By DEE-ANN DURBIN
AP Business Writer

Starbucks had a strong holiday season in the U.S., but those results were offset by higher labor and commodity costs and weaker sales in China. U.S. same-store sales, or sales at stores open at least a year, were up 18% over the October-December period a year ago despite higher prices. But same-store sales in China fell 14% as 75% of stores were closed or operating with limited hours. Starbucks’ revenue rose 19% to $8.1 billion in its fiscal first quarter. That was ahead of Wall Street’s forecast. But earnings per share fell short as the company spend more on hiring and training.