Starbucks 2012 Annual Report Download - page 43

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37
Revenues
Americas total net revenues for fiscal 2011 increased 7%, or $577 million. The increase was primarily driven by
an increase in comparable store sales in our company-operated stores of 8% (contributing approximately $590
million), driven by a 5% increase in number of transactions and a 2% increase in average value per transaction.
Also contributing to the increase was favorable foreign currency translation resulting from the weakening of the
US dollar (approximately $51 million), primarily in relation to the Canadian dollar, and an increase in product
sales to and royalty revenues from licensees (approximately $73 million), primarily due to improved comparable
store sales and net new store openings. These increases were partially offset by the absence of the extra week in
fiscal 2010 (approximately $162 million).
Operating Expenses
Cost of sales including occupancy costs as a percentage of total net revenues increased 40 basis points over the
prior year. The increase was primarily due to higher commodity costs (approximately 140 basis points), mainly
coffee, partially offset by increased sales leverage on occupancy costs (approximately 60 basis points).
Store operating expenses as a percentage of total net revenues decreased 120 basis points primarily due to
increased sales leverage.
Also contributing to the increase in operating margin was the absence of restructuring charges in fiscal 2011
(approximately 30 basis points) and increased sales leverage resulting in lower depreciation and amortization
expenses as a percentage of total net revenues (contributing 30 basis points). The combination of these changes
resulted in an overall increase in operating margin of 140 basis points for fiscal 2011.
EMEA
Fiscal Year Ended
Oct 2,
2011
Oct 3,
2010
Oct 2,
2011
Oct 3,
2010
As a % of EMEA Total
Net Revenues
Total net revenues $ 1,046.8 $ 953.4 100.0% 100.0%
Cost of sales including occupancy costs 530.3 471.8 50.7% 49.5%
Store operating expenses 327.3 324.5 31.3% 34.0%
Other operating expenses 36.5 36.1 3.5% 3.8%
Depreciation and amortization expenses 53.4 50.6 5.1% 5.3%
General and administrative expenses 65.0 58.2 6.2% 6.1%
Restructuring charges — 24.5
—
2.6%
Total operating expenses 1,012.5 965.7 96.7% 101.3%
Income from equity investees 6.0 6.8 0.6% 0.7%
Operating income $ 40.3 $ (5.5) 3.8% (0.6)%
Supplemental ratios as a % of related revenues:
Store operating expenses 36.1% 38.4%
Revenues
EMEA total net revenues for fiscal 2011 increased 10%, or $93 million. The increase was primarily driven by
favorable foreign currency translation resulting from the weakening of the US dollar (approximately $35 million),
primarily in relation to the British pound, the acquisition of the remaining interest in our previous joint venture
operations in Switzerland and Austria in the fourth quarter of fiscal 2011 (approximately $28 million), and an
%