Starbucks announces billions in losses but remains optimistic
Seattle, Washington - As the coronavirus outbreak rattled the global economy, Starbucks was forced to temporarily close many of its shops. However, the coffee giant has come off better than expected so far.
The world's largest coffeehouse chain reported Thursday that sales in the last quarter were down 51% compared to the previous year.
Revenue of $6.2 billion was down 8% from the same period last yea, but it was still better than analysts had predicted.
Starbucks said it lost about $1.2 billion in sales due to temporary shutdowns, restricted opening hours, and fewer customers coming in.
Global same-store sales fell 9% from the prior year, beating expectations of the 12% to 17% drop the company anticipated in July.
However, the coffee chain's CEO Kevin Johnson and other experts are optimistic that things will get better for Starbucks.
"Our strategies are working and I am optimistic that we will emerge from the COVID-19 pandemic as a stronger and more resilient company," Johnson said in an email.
The chain predicts that global sales will grow between 18% and 23% during the first quarter and 2021, and comparable sales in the US to increase between 17% and 22% in the same time period.
Cover photo: imago images / Hanno Bode