Starbucks reports 4 percent drop in global sales in October-December period
Date
1/30/2025 4:05:11 AM
(MENAFN) Starbucks reported a 4 percent decline in global sales for the October-December period of fiscal year 2025, according to its first-quarter results released on Tuesday. Fiscal year 2025 for Starbucks began in October 2024, marking the start of a new financial year for the company. The drop in sales reflected weaker performance in key markets such as North America and China.
In North America, Starbucks' comparable store sales fell by 4 percent, while its sales in China, a critical market for the company, dropped by 6 percent. These declines contributed to the overall sales decrease, signaling challenges in these important regions. Despite the drop in sales, the company’s overall revenue for the quarter remained stable, holding steady at USD9.4 billion, which was unchanged from the same period in 2023.
However, Starbucks' earnings per share (EPS) showed a significant decrease of 23 percent, falling to USD0.69 compared to USD0.90 in the previous year. This decline in EPS reflects the company's struggle to maintain profitability amid weaker sales performance. The results highlight the ongoing challenges facing Starbucks in certain markets.
On a positive note, Starbucks continued to expand its global footprint, opening 377 net new stores during the same period, bringing its total store count to 40,576. This expansion shows the company's commitment to growth, even as it faces challenges in key regions.
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