Starbucks global sales down 7%
The preliminary results, published more than a week ahead of schedule, are the first under new chief executive Brian Niccol, who joined the coffee chain last month.
Global comparable store sales fell 7% year on year in Q4. Net revenues declined 3% to $9.1bn in the three months to September and sales fell 25% year over year on a per-share basis.
“Given the company’s CEO transition coupled with the current state of the business, guidance will be suspended for the full fiscal year 2025,” the company said.
Poor sales at Starbucks have been blamed on consumers turning away from high prices for drinks and the long queues during busy times.
The company ousted former CEO Laxman Narasimhan in August and hired Niccol, who has been credited with turning around burrito chain Chipotle.
Niccol has set out a vision to restore the cosy atmosphere found at Starbucks locations in its early days, saying he would first focus on the chain’s US stores.
In a video released on Tuesday (22 October_, Niccol said it was 'clear the group needs to fundamentally change its recent strategy' to return to growth.
He outlined plans including simplifying an 'overly complex' menu, fixing pricing architecture and altering its mobile ordering and payment system 'so it doesn’t overwhelm the café experience'.
“We need to focus on what has always set us apart — a welcoming coffee house where people gather and where we serve the finest coffee, handcrafted by our skilled baristas,” he said.
The company’s full results remain scheduled for release on October 30.
Shares in Starbucks were down 3.6% in after-hours trading.
