ISTANBUL – US-based coffeehouse chain Starbucks reported a sales decline for the third consecutive quarter, according to its financial results statement released Wednesday, Anadolu Agency reported.
Global comparable store sales declined by 7%, the statement said.
While North American store sales fell by 6%, sales in China dropped by 14%, and international store sales decreased by 9%, according to the statement.
The company said it opened 722 net new stores in the fourth quarter of the 2024 fiscal year, which corresponds to the July-September period of this year, ending the period with a total of 40,199 stores globally.
“At the end of Q4, stores in the US and China comprised 61% of the company’s global portfolio, with 16,941 and 7,596 stores in the US and China, respectively,” said the statement.
The company saw a 3% revenue decrease to $6.69 billion from $6.9 billion year-on-year, according to the financial results.
“It is clear we need to fundamentally change our strategy to win back customers,” said Brian Niccol, chairman and CEO.
“We have a clear plan and are moving quickly to return Starbucks to growth.”
CFO Rachel Ruggeri said the financial results do not reflect the strength of the Starbucks brand, adding she has confidence in the company’s ability to turn around its business and return to long-term growth. – October 31, 2024