Starbucks Encounters Revenue Challenges

(MENAFN) The American coffee giant Starbucks reported a sharper-than-anticipated 2% drop in its global comparable store sales during the April-to-June period, as revealed in its quarterly financial statement released on Tuesday.

In the same timeframe, the company's comparable sales within North America also dipped by 2%, reflecting weakening consumer demand in its primary market.

Internationally, Starbucks saw stagnant comparable store performance, showing no change from the previous year.

However, sales in China, a key overseas market, witnessed a modest 2% growth.

Despite the sluggish sales figures, total revenue for the quarter increased by 3.8% compared to the prior year, reaching $9.5 billion for the three-month period ending on June 29.

Nevertheless, the company’s net income fell significantly—by 47%—amounting to $558.3 million for the quarter.

Additionally, Starbucks reported a steep 47.3% year-on-year decline in earnings per share, which dropped to $0.49.

Facing ongoing criticism and consumer boycotts linked to Israel's military actions in Gaza, Starbucks also recorded its sixth straight quarterly decrease in US same-store sales, signaling continued pressure on its domestic business.

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