Starbucks strikes optimistic note despite subdued sales showing
2025-04-29 20:54
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(Alliance News) - Starbucks Corp on Tuesday said it is on track despite a lacklustre sales performance in its second quarter.
The Seattle, Washington-based coffee house chain said operating income fell to USD601.0 million in the three months to March 30 from USD1.10 billion a year prior.
Net earnings attributable fell to USD384.2 million from USD772.4 million or to USD0.34 per diluted share from USD0.68.
Revenue rose 2.3% to USD8.76 billion from USD8.56 billion but global comparable store sales declined 1%, driven by a 2% decline in comparable transactions, partially offset by a 1% increase in average ticket.
North America comparable store sales declined 1%, International comparable store sales increased 2% while China comparable store sales were flat.
"My optimism has turned into confidence that our 'Back to Starbucks' plan is the right strategy to turn the business around and to unlock opportunities ahead," commented Brian Niccol, chair & chief executive officer.
"Improving transaction comp in a tough consumer environment at our scale is a testament to the power of our brand and partners getting 'Back to Starbucks.' We are on track and if anything, I see more opportunity than I imagined," Niccol added.
Shares in Starbucks were down 0.7% at USD84.30 each in after hours trading in New York on Tuesday.
By Jeremy Cutler, Alliance News reporter
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