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Starbucks has suspended its financial guidance as it unexpectedly released results that showed a decline in revenue and sharper 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.
Global comparable store sales fell by 7 per cent year on year in the fourth quarter that ended in September. Net revenues declined by 3 per cent to $9.1bn. On a per-share basis, earnings fell by 25 per cent year over year.
“Our fourth quarter performance makes it clear that we need to fundamentally change our strategy so we can get back to growth,” Niccol said.
Starbucks shares fell 4.2 per cent in after-hours trading.
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