Starbucks Corp (NASDAQ:SBUX) has warned that global sales growth for the year would be at the bottom end of its guidance following a disappointing first quarter.
The US café chain said its festive-themed drinks and merchandise - such as Eggnogg and Gingerbread lattes, gift mugs and coffee and tea gift boxes - offered over the Christmas period failed to resonate with its customers.
READ: Starbucks loses steam after cutting long-term growth target and disappointing fourth quarter numbers
The company added that a shift towards online shopping from brick-and-mortar stores meant the number of cafe visitors in the US did not budge in the first quarter ended December 31.
Global same-store sales rose just 2% in the first quarter and sales at established American region cafes also increased 2%, with growth driven by customers adding food to their orders.
Same-store sales in Europe, the Middle East and Africa fell 1% in the quarter.
China the star performer as Starbucks expands
In China, where Starbucks has been expanding, same-store sales grew 6%.
Starbucks bought 1,300 stores in China during the period and plans to triple its 3,000-store network within a decade.
Growth in China helped total net income rise to US$2.25bn, or US$1.57 per share, from US$751.8mln, or 51 cents per share, a year ago. Excluding items, the group earned 58 cents per share.
Full year guidance
Starbucks now expects 2018 global same-store sales growth at the low end of its previously estimated range of 3% to 5%.
However, it raised its earnings forecast to US$2.48 to US$2.53 per share, excluding items, from US$2.30 to US$2.33 per share previously.
In an effort to boost US sales, Starbucks said it will offer discounts in the afternoon since customer interest has waned during the later hours of the day.
The coffee giant also plans to leverage mobile ordering and digital marketing to increase the number of times consumers visit the coffee shop.
Starbucks added 1.4million Starbucks Rewards members in the US in the quarter, bringing the total number of members to 14.2million.
Shares fell 4.3% to US$60.55 in after-hours trading in the US.