Starbucks reported lower-than-expected sales in its fiscal first quarter, hurt by COVID restrictions in China and lower consumer demand in other markets.
Global same-store sales — or sales at stores open at least a year — were up 5% in the October-December period, but that was partly due to higher prices. Store transactions were down 2%. Analysts polled by FactSet had forecast a 6.7% increase in same-store sales.
In the U.S., same-store sales were up 10% as customers spent more per order. But overall transactions rose just 1%.
Starbucks said its revenue rose 8% to a record $8.7 billion, but that also fell short of analysts’ expectation of $8.79 billion.
Starbucks’ interim CEO Howard Schultz said the quarter was softer for overall retail, which impacted customer traffic. He also noted the unprecedented situation in China, where same-store sales dropped 28%.
Starbucks said its net income rose 5% to $855 million, or 74 cents per share. That was also lower than the 77 cents analysts had forecast.
Starbucks shares fell 3% in after-market trading.
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