Starbucks Offers Free Shipping

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No need to visit Starbucks to get bags of coffee and mugs. It sells those products online. Like major retailers, it has gotten into the free shipping business, for orders of $30 or more.

The shipping is what Starbucks Corp. (NASDAQ: SBUX) calls “standard,” so customers will need to wait awhile for their orders. “Free shipping” is four to eight days. Order early, as a week is a long time. For two business days, it is $14.95. For one business day, $24.95.

The items people will pay to ship include most Starbucks coffee options, which sell for $14 to $25 a package. Many of Starbucks mugs and cups won’t qualify for free shipping either, although the White Double Wall Traveler adorned with Swarovski crystals costs $74.95.

Incidentally, Starbucks did just release its fiscal fourth-quarter earnings report, which shows free shipping won’t dent its momentum:

  • U.S. comparable store sales increase of 4% was comprised of 6% increase in average ticket and 1% decrease in traffic. After adjusting for the estimated impact of order consolidation related to the new Starbucks Rewards™ loyalty program, average ticket grew 4% and traffic grew 1%.
  • Consolidated net revenues grew 16% to $5.7 billion
  • Consolidated operating income increased 27% to $1.2 billion
  • Consolidated operating margin expanded 180 basis points to 21.5%
  • GAAP EPS increased 26% to $0.54 per share and included $0.06 related to the extra week in Q4 FY16
    • Non-GAAP EPS of $0.56 included $0.06 related to the extra week in Q4 FY16. Excluding the extra week, non-GAAP EPS of $0.50 grew 16% over Q4 FY15 non-GAAP EPS
  • Non-GAAP EPS of $0.56 included $0.06 related to the extra week in Q4 FY16. Excluding the extra week, non-GAAP EPS of $0.50 grew 16% over Q4 FY15 non-GAAP EPS
  • The company opened 690 net new stores in the quarter, bringing total stores to 25,085 in 75 countries worldwide
  • Mobile Order and Pay represented 6% of U.S. transactions in the quarter, up from 5% in the prior quarter