Starbucks said Tuesday that its global sales plunged in the first three months of the year as coronavirus-related shutdowns crippled its global operations.
The Seattle-based coffee giant said 98% of its stores in China have reopened, but many are operating with reduced hours and seating. In the U.S., the company has temporarily closed half of its 8,000 company-owned stores, while 75% of stores in the United Kingdom, Japan and Canada are shuttered.
The company said sales at its established stores fell 10% in the January-March period. It expects conditions to worsen in its fiscal third quarter before moderating later this year. It said it is withdrawing most 2020 financial guidance as a result.
Starbucks' revenue fell 5% to $6 billion in its fiscal second quarter. That beat analysts' estimate of $5.9 billion, according to FactSet.
The company earned $328.4 million for the quarter, down 50.5% from the prior year. Adjusted earnings of 32 cents per share were shy of analysts' estimate of 34 cents. Starbucks' same-store sales decline — which compares sales at stores open at least a year — was also higher than analysts anticipated.
Starbucks shares fell 1% in after-hours trading.
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