Starbucks falls sharply after horror numbers – E24

The CEO is characterized by a sharp decline in sales.

Starbucks coffee chain Subtract numbers For the second quarter, which ended March 31, after Wall Street closed Tuesday night.

Revenue fell to $8.56 billion in the quarter, down from $8.7 billion in the corresponding quarter last year. In advance, its turnover was expected to be $9.13 billion.

Earnings per share closed at $0.68, while the expected result was $0.79 per share.

Starbucks shares fell 11.0 percent in after-market trading at 10:40 p.m.

Global sales figures fell by four per cent during the quarter, while traffic to cafes fell by six per cent.

In the United States, the coffee chain's sales fell by three percent, while in China they fell by a whopping 11 percent during the quarter.

A very difficult quarter

“In a challenging landscape, this quarter’s results do not reflect the strength of our brand,” says Laxman Narasimhan, Starbucks CEO.

– This did not meet our expectations, but we understand the specific challenges and opportunities that lie ahead.

The coffee chain opened a total of 364 new outlets in the second quarter, according to the report. At the end of the quarter, Starbucks had a total of 38,951 cafes.

Starbucks will discuss the financial outlook for the rest of the year during an investor conference later one evening.

The coffee chain lists a number of potential risk factors that could affect future expectations, including unfavorable global or regional economic conditions, rising interest rates or higher inflation.

The Starbucks CEO previously said that the company is operating in very difficult times, and that it may take some time to resolve operational challenges.

Starbucks shares rose cautiously 0.18 percent on Wall Street before the numbers were released on Tuesday. So far this year, the share has risen 5.53 percent.