Starbucks 2012 Annual Report Download - page 44

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38
increase in comparable store sales in our company-operated stores of 3% (approximately $24 million). An
increase in royalty revenues from and product sales to licensees also contributed (approximately $20 million), 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 $18 million).
Operating Expenses
Cost of sales including occupancy costs as a percentage of total net revenues increased by 120 basis points
compared to the prior year. The increase was primarily driven by higher higher commodity costs (approximately
160 basis points), mainly coffee, partially offset by increased sales leverage on occupancy costs (approximately 50
basis points).
Store operating expenses as a percentage of total net revenues decreased 270 basis points. Increased licensed
stores revenues contributed approximately 40 basis points to the decrease. Store operating expenses as a
percentage of company-operated store revenues decreased 230 basis points primarily due to fewer impairment
charges in fiscal 2011 compared to fiscal 2010 (approximately 110 basis points), lower equipment maintenance
costs (approximately 60 basis points) and increased sales leverage on salaries and benefits (approximately 40
basis).
Also contributing to the increase in operating margin was the absence of restructuring charges in fiscal 2011
(approximately 260 basis points). The combination of these changes resulted in an overall increase in operating
margin of 440 basis points for fiscal 2011.
China / Asia Pacific
Fiscal Year Ended
Oct 2,
2011
Oct 3,
2010
Oct 2,
2011
Oct 3,
2010
As a % of CAP Total
Net Revenues
Total net revenues $ 552.3 $ 407.3 100.0% 100.0%
Cost of sales including occupancy costs 282.0 213.4 51.1% 52.4%
Store operating expenses 83.4 64.1 15.1% 15.7%
Other operating expenses 35.7 30.0 6.5% 7.4%
Depreciation and amortization expenses 18.1 15.8 3.3% 3.9%
General and administrative expenses 32.9 27.4 6.0% 6.7%
Restructuring charges
—
0.1 — —
Total operating expenses 452.1 350.8 81.9% 86.1%
Income from equity investees 92.9 73.1 16.8% 17.9%
Operating income $ 193.1 $ 129.6 35.0% 31.8%
Supplemental ratios as a % of related revenues:
Store operating expenses 23.1% 25.4%
Revenues
China / Asia Pacific total net revenues for fiscal 2011 increased 36%, or $145 million. The increase was primarily
driven by an increase in comparable store sales in our company-operated stores of 22% (contributing
approximately $58 million), driven by a 20% increase in number of transactions and a 2% increase in average
value per transaction. Also contributing to the increase in total net revenues was favorable foreign currency
translation resulting from the weakening of the US dollar (approximately $40 million), the opening of 73 net new
company-operated stores in the past 12 months (approximately $40 million), and an increase in royalty revenues
% %