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Starbucks has suspended its financial guidance as it unexpectedly released results that showed a decline in revenue and a sharp drop in quarterly earnings.
The preliminary results, published more than a week ahead of schedule, are the first under new chief executive Brian Niccol, who joined the world’s largest coffee chain last month.
Starbucks’ global comparable store sales fell 7 per cent year on year in the fourth quarter that ended in September. Net revenues declined 3 per cent to $9.1bn. On a per-share basis, earnings fell 25 per cent year over year.
Niccol said: “Our fourth quarter performance makes it clear that we need to fundamentally change our strategy so we can get back to growth.”
Starbucks shares fell 4.2 per cent in after-hours trading.
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