Starbucks reported on Wednesday that its global sales fell 7% in July-September-the coffee chain's third consecutive quarter of decline.
Starbucks' global comparable store sales fell 7% in July-September and 2% for the full fiscal year, accounting for the 52-week period ending Sept. 29.
The company's earnings per share fell 25% compared to the same period last year to 80 cents. Its consolidated net revenues declined 3% to $9.1 billion.
The coffee chain suspended its annual forecast for the next fiscal year as its new CEO, Brian Niccol, said Starbucks needs a "fundamental change."
"The lower-than-expected performance for the full fiscal year was a result of pronounced traffic decline, including a cautious consumer environment, and our targeted and accelerated investments not improving customer behaviors, as well as the macro and competitive environment in China pressuring our results further," said a Starbucks press release.
Starbucks CFO Rachel Ruggeri said in the statement that despite increasing investments in the coffee chain, no notable change was seen in declining traffic despite their efficiency efforts-though they reportedly have a plan to revitalize business in the long term.
- Starbucks shaken by boycott of companies supporting Israel
Starbucks has faced protests and boycott campaigns across the globe for supporting Israel, as reflected in the company's financial results for the last three quarters.
The coffee chain lowered its annual sales forecast for October-December last year due to the negative impact on sales in the Middle East, while its revenue fell 2% this January-March and its global sales declined 4%, a first since the end of 2020.
Starbucks reported that its global sales fell 3% in April-June.
