Starbucks Corp (NASDAQ:SBUX, ETR:SRB) reported mixed financial results for the fiscal second quarter as new CEO Brian Niccol seeks to turnaround the business amid a challenging consumer environment, sending its shares lower afterhours on Tuesday.
For the three-month period ending March 30, the Seattle-based coffee chain reported earnings per share of $0.41, down 40% from the previous year. Wall Street analysts had expected $0.48.
Revenue increased 2% year-over-year to $8.8 billion, in line with estimates.
Global comparable store sales fell 1%, driven by a 2% drop in comparable transactions, partially offset by a 1% increase in average ticket.
Starbucks opened 213 net new stores in Q2, ending the quarter with 40,789 stores.
CEO Niccol expressed confidence in the company’s ‘Back to Starbucks” business turnaround plan.
“Improving transaction comp in a tough consumer environment at our scale is a testament to the power of our brand and partners getting 'Back to Starbucks.' We are on track and if anything, I see more opportunity than I imagined,” Niccol said.
Starbucks’ chief financial officer Cathy Smith added: “While our financial results are far from Starbucks potential, we are working to build back a better business.”
Shares of Starbucks traded down 1.2% at about $84 post-earnings.