Starbucks Sales Up 13 Pct, Shares Rise

Wed Dec 1, 2004 04:46 PM ET

LOS ANGELES (Reuters) - Starbucks Corp. (SBUX.O: Quote, Profile, Research) on Wednesday said sales at stores open at least 13 months rose 13 percent in November, helped by the coffee shop chain`s early launch of holiday products such as Christmas blend coffee beans.

Starbucks shares rose 2 percent in after-hours trading following the same-store sales announcement.

The rise was the chain`s largest since February, but Starbucks Chairman Howard Schultz warned investors not to expect such dramatic sales spikes going forward.

``It is important to note, as we have said in the past, that comparable store sales growth of the extraordinary level achieved in November is not sustainable,`` Schultz said in a statement.

The company reiterated its long-term same-store sales growth forecast of 3 to 7 percent.

In addition to sales of holiday products such as its Christmas Blend coffee beans, Starbucks said healthy demand for its new pumpkin spice latte and strong sales of music products all helped drive same-store sales during the period.

Net revenue for the 4 weeks ended Nov. 28 rose 26 percent to $486 million.

Starbucks shares rose to $58.70 on the Inet electronic brokerage after their Nasdaq close of $57.55.

BTW shares are almost $61.00 today.