United States – The giant coffee company “Starbucks” announced losses due to a decline in profits and revenues, driven by a decline in sales in the company’s stores as a result of the boycott, which led to a sharp decline in the stock price by about 16%.
The decline in the company’s sales in the past few months comes as a result of the boycott campaigns that hit its sales of its own products against the backdrop of its support for the Israeli war on the Gaza Strip. These campaigns also prompted the company to reduce its expectations for profits and revenues for the fiscal year 2024 and it expected that the performance of its cafes would remain weak in the near future. .
“In a challenging environment, this quarter’s results do not reflect the strength of our brand, our capabilities or the opportunities ahead,” CEO Laxman Narasimhan said in a statement.
Same-store sales were down 4%. Experts expected same-store sales to grow by 1%.
In the United States, store sales fell 3% with traffic falling 7%. This represents the second quarter in which the company’s domestic market suffered. In the latest quarter, executives blamed a sales slowdown on a boycott targeting the company over its stance on Israel.
Starbucks’ international segment reported a 6% decline in store sales as average tickets and transactions declined. In China, Starbucks’ second-largest market, store sales fell by 11%.
The coffee giant announced net financial income in the second quarter attributable to the company of $772.4 million, or 68 cents per share, down from $908.3 million, or 79 cents per share, the previous year. Net sales decreased by approximately 2% to $8.56 billion.
For fiscal 2024, Starbucks now expects revenue to grow in the low numbers, down from its previous forecast of 7% to 10%.
Source: RT + agencies
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2024-05-03 11:41:38