(RTTNews) - Starbucks Corp. (SBUX: News ) said Thursday after the markets closed that its fourth quarter profit rose sharply from last year, as its cost cutting initiatives helped improve margins. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations. At the same time, the company raised its earnings outlook for the fiscal year 2010.

The world's largest specialty coffee retailer reported GAAP net income for the fourth quarter of $150.0 million or $0.20 per share, compared to $5.4 million or $0.01 per share for the year-ago quarter.

Excluding restructuring charges, non-GAAP net income for the fourth quarter was $184.1 million or $0.24 per share, compared to $71.0 million or $0.10 per share in the prior year quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.21 per share for the fourth quarter. Analysts' estimates typically exclude special items.

GAAP operating margin for the quarter improved to 8.2% from 0.6% a year ago, while non-GAAP operating margin increased to 10.4% from 4.7% last year. The improvement was driven by cost savings initiatives, majority of which are the result of in-store operating improvements focused on labor efficiencies and reduced product waste, and lower non-store support costs.

The Seattle, Washington-based company said revenue for the fourth quarter fell 4% to $2.42 billion from $2.52 billion in the same quarter last year. Fifteen analysts had a consensus revenue estimate of $2.39 billion for the fourth quarter.
The company attributed the revenue decline mainly to the the impact of a stronger U.S. dollar relative to the British pound and Canadian dollar, 385 net fewer company-operated stores open in the quarter as compared to a year ago and a 1% decline in consolidated same-store sales.

The company's U.S. revenue for the fourth quarter fell 4% to $1.72 billion from $1.79 billion a year earlier due to lower revenues from fewer company-operated retail stores. U.S. same-store sales for the quarter declined 1%, due to a decrease in the number of transactions.

International revenue for the quarter fell 4% to $513.6 million from $533.6 million in the prior year quarter, hurt by the impact of a stronger U.S. dollar relative to the British pound and Canadian dollar.

Global Consumer Products Group revenue for the fourth quarter declined 2% to $188.1 million from $191.1 million in the year-ago quarter, due to lower foodservice revenues caused by continued softness in the hospitality industry, partially offset by higher revenues from packaged coffee.

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