Starbucks reports sales decline for third consecutive quarter

6 days ago

Starbucks reports sales decline for third consecutive quarter

ISTANBUL, Oct 31 — United States (US)-based coffeehouse chain Starbucks Corporation reported a sales decline for the third consecutive quarter, according to its financial results statement released on Wednesday, Anadolu Agency reported.

Global comparable store sales declined by seven per cent.

While North American store sales fell by six per cent, sales in China dropped by 14 per cent, and international store sales decreased by nine per cent, according to the statement.

The company said it opened 722 net new stores in the fourth quarter of the 2024 fiscal year, which corresponds to the July-September period of this year, ending the period with a total of 40,199 stores globally.

“At the end of Q4, stores in the US and China comprised 61 per cent of the company’s global portfolio, with 16,941 and 7,596 stores in the US and China, respectively,” it said.

Starbucks saw a three per cent revenue decrease to US$6.69 billion (RM29.2 billion) from US$6.9 billion (RM30.2 billion) year-on-year, according to the financial results.

“It is clear we need to fundamentally change our strategy to win back customers. We have a clear plan and are moving quickly to return Starbucks to growth,” said its chairman and chief executive officer Brian Niccol.

Chief financial officer Rachel Ruggeri said the financial results do not reflect the strength of the Starbucks brand, and added that she has confidence in the company’s ability to turn around its business and return to long-term growth.

— Bernama

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