STARBUCKS REPORTS GLOBAL JULY-SEPTEMBER SALES DECLINE

Fri 25 October 2024:

Starbucks reported on Wednesday that its global sales fell seven per cent in the period July to September this year, the coffee chain’s third consecutive quarter of decline, Anadolu has reported. The company’s global comparable store sales fell 7two per cent for the full fiscal year ending 29 September.

Earnings per share fell 25 per cent compared with the same period last year, down to 80 cents. Its consolidated net revenues declined three per cent to $9.1 billion.

New CEO Brian Niccol said that Starbucks needs a “fundamental change” as it suspended its annual forecast for the next fiscal year. “The lower-than-expected performance for the full fiscal year was a result of pronounced traffic decline, including a cautious consumer environment, and our targeted and accelerated investments not improving customer behaviours, as well as the macro and competitive environment in China pressuring our results further,” said a Starbucks press release.

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Chief Finance Officer Rachel Ruggeri said that despite increasing investments in the coffee chain, no notable change was seen in declining traffic despite their efficiency efforts, although executives reportedly have a plan to revitalise business in the long term.

Starbucks has faced protests and boycott campaigns across the globe for supporting Israel. The effects are reflected in the company’s financial results for the past three quarters. The coffee chain lowered its annual sales forecast for October-December last year due to the negative impact on sales in the Middle East, while its revenue fell two per cent in January-March and its global sales declined four per cent, a first since the end of 2020. Global sales fell three per cent in April-June.

-MEMO

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