Starbucks same-store sales fell 10% in first three months of year as coronavirus hit China and US

A pedestrian wearing a protective mask walks in front of a temporarily closed Starbucks coffee shop in Brooklyn, New York, on Monday, April 27, 2020.

Gabby Jones | Bloomberg via Getty Images

Starbucks on Tuesday said that its fiscal second-quarter global same-store sales fell 10% as the coronavirus hit sales in its two largest markets, the United States and China.

Shares of the company fell less than 1% in extended trading.

Here’s what the company reported:

  • Earnings per share: 32 cents, adjusted
  • Revenue: $6 billion 

The coffee chain reported fiscal second-quarter net income of $328.4 million, or 28 cents per share, down from $663.2 million, or 53 cents per share, a year earlier.

Excluding items, Starbucks earned 32 cents per share, down nearly half from the prior year.

Net sales dropped 5% to $6 billion. 

Wall Street anticipated earnings per share of 34 cents on revenue of $5.89 billion, based on a survey of analysts by Refinitiv.

Global same-store sales declined 10%, as overall transactions fell 13%. U.S. same-store sales fell 3% during the quarter, while Chinese same-store sales plunged 50% in the same period. Sales in China have improved after the company started reopening cafes in late February and consumers adapt to a new normal.

Earlier this month, the company withdrew its fiscal 2020 forecast, citing the “dynamic nature” of the coronavirus crisis.

Catastrophe pay for baristas, hourly pay increases and the cost of store safety items like face coverings weighed on profits during the quarter. 

Read the full earnings report here.

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