I did not know they were reporting today when I wrote this. Glad to see management helped cement my points..
Starbucks late today reported fiscal second-quarter net income fell 77% to $25 million, or 3 cents a share, due to charges to close stores. A year ago, Starbucks earned $108.7 million, or 15 cents a share. Sales fell to $2.3 billion from $2.5 billion. Excluding charges, Starbucks said it made 16 cents a share. Analysts had expected Starbucks to earn 16 cents a share on sales of $2.38 billion, according to FactSet Research.
BUT
Starbucks said that its cost savings plans were ahead of schedule as it reduced expenses by $120 million during the period.
So, explain this?
While the company triumphs its cutting, total expenses only dropped 2% to $2.32 billion which included $152 million in restructuring fees. Not going to get it done
What really matters? Customer are not going in.
US comparable store sales were down 8% for the quarter.
Sad…..and it was avoidable…
Disclosure (“none” means no position):