Starbucks sales disappoint, stock falls 5%
Reuters/Kim Hong-Ji
Starbucks reported in-line earnings Thursday for its fiscal second quarter, but sales came in a little light and the stock is sliding.
The company reported earnings of $0.39 per share, exactly in line with analyst expectations. Revenue came in at $5.00 billion against expectations of $5.03 billion.
Global comparable store sales, however, grew 6% year over year versus expectations of 6.7% growth. 4% of the growth came from increased purchase size and 2% from increased visitors.
Sales were weaker than expectations in all three regions. US sales growth came in at 7% for the quarter against expectations of 7.4%. China and Asia-Pacific grew sales 3% versus expectations of 4.6% and Europe, middle East, and Africa came in at 1% growth against expectations of 3.4%.
"Starbucks Q2 represented another quarter of solid growth, with the highest revenues of any non-holiday quarter in our history and excellent financial, operating and profit performance," said CFO Scott Mew in a release accompanying the earnings.
After the announcement, the stock has been sliding. As of 4:30 p.m. ET the stock is down around 4.85% at $57.70 a share.
Reuters/Kim Hong-Ji
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