Starbucks reopening in China is a ‘beacon of hope’: Board member
Starbucks board member Claire Shih says international companies like Starbucks are taking lessons learned from abroad and using them domestically.
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Starbucks sales plunged during the second quarter after the coronavirus pandemic forced the coffeehouse chain to limit operations at most of its North American stores, the company confirmed in an earnings release Tuesday.
The Seattle-based company said its U.S. same-store sales fell 3 percent in the quarter, while global same-store sales declined 10 percent. Same-store sales were down 50 percent in China for the period, though most locations have since reopened in that region.
STARBUCKS EYES STORE REOPENINGS AS CORONAVIRUS FIGHT SHOWS PROGRESS
Starbucks reported adjusted earnings per share of 32 cents, down 47 percent compared to the same quarter one year ago. Revenue plunged five percent to $6 billion.
“We are leveraging our experience in China to inform our actions in other markets, including the U.S., where we are now entering the 'monitor and adapt' phase to reopen many more stores with best-in-class safety protocols,” Starbucks CEO Kevin Johnson said in a statement. We continue to navigate this dynamic situation — which we believe is temporary — and are confident that Starbucks will emerge from this global crisis even stronger than before.”
Starbucks ticked down about 1 percent in after-hours trading. The company’s stock was down about 11 percent so far this year as of market close Tuesday.
About 90 percent of company-owned U.S. stores are expected to reopen by early June. Starbucks expects the pandemic to negatively impact U.S. same-store sales into the fourth quarter.