Starbucks shares sink 8% as same-store sales fall, quarterly results miss

A store of Starbucks Coffee shop chain located in Amsterdam city center with people sitting inside, enjoying a coffee after shopping in the cafe, while others are walking by. 

Nicolas Economou | Nurphoto | Getty Images

Starbucks on Tuesday reported weaker-than-expected quarterly earnings and revenue, fueled by a surprise decline in same-store sales.

Shares of the company fell 8% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

  • Earnings per share: 68 cents adjusted vs. 79 cents expected
  • Revenue: $8.56 billion vs. $9.13 billion expected

The coffee giant reported fiscal second-quarter net income attributable to the company of $772.4 million, or 68 cents per share, down from $908.3 million, or 79 cents per share, a year earlier.

Net sales dropped nearly 2% to $8.56 billion. The company’s same-store sales fell 4% as traffic to its cafes declined 6% in the quarter.

Starbucks said it will discuss its full-year financial outlook during the company’s conference call later on Tuesday. Last quarter, it said it anticipates revenue growth of 7% to 10%, global same-store sales growth in a range of 4% to 6% and earnings per share growth of 15% to 20%.

This story is developing. Please check back for updates.

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