• by Karlene Lukovitz  @KLmarketdaily, November 4, 2011

Starbucks reported its first $3-billion quarter in fiscal Q4 2011. On top of record sales in each of the year’s first three quarters, Q4 brought the company’s full-year net revenues to a record $11.7 billion -- up 9% versus fiscal 2010.

Q4 comparable-store sales increased by 10% in the U.S. and 6% in international markets. Full-year comp sales grew by 8% in the U.S. and 5% in international markets.

Total revenues rose 3% in Q4, and 9% for the full year. Operating income grew by 9% in Q4 and 22% for the full year. EPS jumped by 27% in Q4 and 31% for the full year.

During the company’s earnings call, CEO Howard Schultz stressed that these results were achieved despite global economic uncertainty, high levels of U.S. and global unemployment, high commodities costs and “formidable operating headwinds” for global retailers.

In the U.S., Schultz pointed to double-digit comp-sales growth in Q4, solid operating margins throughout the year and record full-year results as evidence of Starbucks’ “deepening connection with U.S. consumers and the increasing power and relevance of the Starbucks brand.”

Schultz reported that My Starbucks Rewards now has more than 3.6 million active members (nearly 2 million are gold-level members), and that the Starbucks card was used for purchases totaling more than $1.1 billion in fiscal 2011. The rewards program “continues to drive traffic, frequency and incrementality for our business and value for our customers, creating further separation between us and everyone else in our space,” he said.

In addition, the card’s mobile app has continued its momentum: As of the end of September, there were nearly 1 million smartphones with at least one registered Starbucks card associated with them. “If you look at just the last six months, we have done more revenue and more transactions on smartphones than any other brand in America,” Schultz said.

He pointed to exceptionally strong response to Starbucks’ traditional seasonal Pumpkin Spice Latte coffee variety -- up 44% over last year -- as demonstrating that the entry of McDonald’s and Dunkin’ Donuts into the premium/specialty coffee arena has not hurt Starbucks. In fact, he said, the increased marketing spend by competitors has likely served to help Starbucks by driving awareness/demand.

At the same time, he said, very strong response to Starbucks’ new Bistro Box (offering fruits, vegetables, lean proteins and whole grains) demonstrates consumers’ willingness to buy healthy food offerings -- as well as coffee -- from the brand.

In 2012, Starbucks will continue to roll out the Bistro Boxes and (both in its stores and through CPG sales in mass-market channels) its new Blonde Roast products.

In addition, through its agreement with Green Mountain Coffee Roasters, more than 50 million Starbucks K-Cups will be shipped to U.S. retailers by the end of November, online sales will begin in December, and sales in Canadian retailers will begin next March. Starbucks expects K-Cups to eventually grow to a $1 billion-plus business, Schultz said.

The company will open at least 200 net stores in the U.S. in 2012, and remodel approximately 1,700 existing stores -- the most it’s ever remodeled in a single year -- focusing on sustainability and the customer experience, Schultz reported.

He also detailed stats and trends demonstrating continuing growth momentum in China -- its international focal point -- and other international markets. Starbucks recently opened its 500th store in China, and has been opening one store every four days in the country on average, and intends to accelerate that pace in 2012.

Globally, the brand’s CPG products are now available in more than 100,000 retail distribution points, Schultz said.

Referring to the blueprint for growth that Starbucks unveiled a year ago, Schultz said the company will continue to aggressively leverage its connection with consumers around the world, its 17,000-store global footprint, and its “unique ability to drive trial, build awareness and trust, and draw on our CPG channel distribution capabilities to scale quickly” to evolve into a branded, multinational CPG company.