MIAMI, FLORIDA – JUNE 11: A Starbucks coffee cup sits on a table as the company reported supply shortages at some coffee shops on June 11, 2021 in Miami, Florida. The coffee chain said it had supply shortages for some items due to problems in the supply chain. (Photo by Joe Raedle/Getty Images)
Joe Raedle | Getty Images News | Getty Images
Starbucks on Tuesday reported quarterly earnings and revenue that missed Wall Street’s expectations as both domestic and international sales fell short of estimates.
CEO Laxman Narasimhan said in a statement that the chain faced “headwinds,” but the brand remains strong.
Shares initially fell in extended trading but recovered, rising about 2%.
Here’s what the company reported for its fiscal first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: 90 cents adjusted vs. 93 cents expected
- Revenue: $9.4 billion vs. $9.59 billion expected
The coffee giant reported fiscal first-quarter net income of $1.02 billion, or 90 cents per share, up from $855.2 million, or 74 cents per share, a year earlier.
Excluding restructuring costs and other items, Starbucks earned 90 cents per share.
Net sales rose 8% to $9.4 billion. Global same-store sales increased 5%, falling short of StreetAccount estimates of 7.2%.
In North America, same-store sales also rose 5%, driven largely by customers spending more on their drinks and food.
Starbucks’ fiscal first quarter encompasses the all-important holiday season. The chain usually nets billions of dollars in gift card sales, plus higher traffic fueled by its seasonal drink offerings and thirsty shoppers.
Outside of Starbucks’ home market, the coffee chain reported international same-store sales growth of 7%, missing expectations of 13.2%.
China, the company’s second-largest market, reported same-store sales growth of 10%. However, the average ticket at its Chinese stores fell 9%.
The chain has seen increased competition from lower-priced rivals like Luckin Coffee, which have won over consumers as China’s economic recovery continues to lag.
