From CNBC: 2024-04-30 18:17:05

Starbucks reported weaker-than-expected quarterly earnings and revenue, with a surprise decline in same-store sales. Shares fell 12% in extended trading as the company slashed its fiscal 2024 forecast. CEO Narasimhan acknowledged challenges and reported falling sales and traffic globally. The company missed earnings and revenue estimates set by Wall Street.

Earnings per share were 68 cents adjusted vs. expected 79 cents, while revenue was $8.56 billion vs. expected $9.13 billion. Net sales fell nearly 2% with same-store sales dropping 4%. Fiscal 2024 projections were revised down to low-single digit growth for revenue and flat to low-single digit for earnings per share. Narasimhan discussed plans to meet overnight demand and highlighted successful product launches.

Starbucks is facing challenges in various markets, including a 6% decline in U.S. same-store sales, an 11% drop in China, and international sales also saw decreases. To adapt, the company is implementing strategic actions and exploring new revenue opportunities. Low-income consumer trends suggest cost-conscious spending habits. CFO Ruggeri mentioned supply chain cost savings now projected at $4 billion over four years, an increase from the previous forecast.



Read more at CNBC: Starbucks (SBUX) earnings Q2 2024