Starbucks Reports Decline in Global Sales Amid Tariff Woes

Published 2 hours agoSBUX

Starbucks Reports Decline in Global Sales Amid Tariff Woes

Starbucks has reported a notable decline in its global sales, with a 7% drop in comparable store sales during the fourth quarter ending September 29, 2024. This marks the third consecutive quarter of declining sales for the coffee giant, as reported by Bloomberg. The drop has heightened concerns among investors regarding the impact of tariffs and a shift in consumer spending habits.

In a closer look at regional performance, Starbucks saw a 6% decrease in same-store sales in the United States, with transactions falling by a significant 10%. Meanwhile, in China, which is the company's second-largest market, comparable sales plummeted by 14%. These declines contributed to a 25% drop in net income, which stood at $909.3 million, or 80 cents per share, according to US News.

In response to these challenges, CEO Brian Niccol is focused on revitalizing U.S. stores by simplifying the menu and improving the in-store experience. One of the strategic goals is to reduce customer wait times to under four minutes, as reported by Reuters. Despite these initiatives, Starbucks has decided to suspend its financial guidance for the full fiscal year 2025, citing ongoing uncertainties and challenges.

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