Starbucks posts decline in sales for third consecutive quarter
Date
10/31/2024 8:48:10 AM
(MENAFN) Starbucks, the US-based coffeehouse chain, reported a decline in sales for the third consecutive quarter, as detailed in its financial results statement released on Wednesday. The company experienced a global comparable store sales drop of 7 percent, indicating ongoing challenges in attracting customers.
The report revealed that store sales in North America decreased by 6 percent, while sales in China experienced a more significant decline of 14 percent. International store sales also fell by 9 percent, highlighting a widespread trend across different markets. In an effort to expand its presence, Starbucks opened 722 net new stores during the fourth quarter of the 2024 fiscal year, which corresponds to the July-September period, ending the quarter with a total of 40,199 stores worldwide.
The statement further noted that by the end of the fourth quarter, stores in the US and China accounted for 61 percent of Starbucks' global portfolio, with 16,941 and 7,596 stores located in these two key markets, respectively. Despite the store expansion, the company reported a 3 percent year-on-year revenue decrease, bringing total revenue to USD6.69 billion, down from USD6.9 billion.
Brian Niccol, the chairman and CEO of Starbucks, acknowledged the need for a fundamental change in strategy to regain customer loyalty. He expressed determination in implementing a clear plan to steer the company back toward growth. Additionally, CFO Rachel Ruggeri commented that the financial results do not accurately reflect the strength of the Starbucks brand and expressed confidence in the company's ability to turn its business around and achieve long-term growth.
MENAFN31102024000045015839ID1108837853
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.