With the second quarter earnings announcement behind us, we wanted to take a few moments to reiterate some of the key themes from the call and give context to the early reaction from media and analysts.
As we discussed today, we are very encouraged by some positive trends in our second-quarter performance. While some of the initial press headlines are focused on an excessive profit decline, they are not taking into account the one-time restructuring charges we are taking for store closures and associated expenses. In short, we beat the consensus analyst estimates this quarter and we’re making progress on our cost-savings initiatives and the overall U.S. business. Our progress today is in large measure due to the tough decisions and sacrifices we have made across the business during this past year of restructuring. The company has come a long way and we have much more to do, but we should all feel good about today’s results.
A few key themes emerged from the earnings call today. Let us share a few of these with you:
We are Healthy
With a strong balance sheet and cash flow, continued cost savings, Starbucks is in strong financial shape and is well positioned for the future. Most important, we continue to be profitable – a claim many companies cannot make these days.
We are Encouraged
While thecontinues, we are seeing early signs of improvement in our business. Traffic declines have leveled off, consumer confidence seems to be rising, and new initiatives like Starbucks VIA Ready Brew are showing promise in our initial, limited roll-out.
We are Ready to Tell our Story
With the upcoming launch of our new marketing campaign, and with your help, we’re ready to tell our story.
Over the next few days there will be more commentary about our business performance and our upcoming marketing campaign. Thanks again for all your contributions to the company and we will update you periodically with financial and media updates.
svp, Public Affairs