Starbucks warned its profit could fall below analysts’ expectations

Starbucks(SBUX) warned on December 4 that its profit could fall below analysts’ expectations on concerning recession impacts to retailers’ sales. Here is from The New York Times:

The chief financial officer, Troy Alstead, said that same-store sales deteriorated by 9 percent in the United States since the company’s fiscal first quarter began at the end of September. In its fiscal fourth quarter, the company reported a decline of 8 percent in the United States — a drop that many investors had hoped would be the company’s steepest.

Sales have been particularly dismal in those states hardest hit by foreclosures, most notably in California and Florida, which make up about 30 percent of the company’s store base.

The comments came during an analyst conference that began with Mr. Schultz trying to curb anxiety on Wall Street about the chain’s sliding sales and profit.

He said he had confidence that “when, not if, this environment does get better that Starbucks is going to be a stronger company for having gone through it.”

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Sources :

The New York Times: Starbucks Issues a Warning on Profit, December 4, 2008

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