/starb ... /starbucks/article10852.html Content-type: text/html Expires: Fri, 07 Sep 2007 09:00:00 GMT Cache-Control: private Pragma: no-cache Last Modified: Wed, 23 Apr, 2008 22:24:02 GMT Starbucks Warns Q2 Earnings Miss
Starbucks says it now expects full-year earnings per share to be Starbucks says it now expects full-year earnings per share to be "somewhat lower" than the 87 cents per share recorded the previous year.

Starbucks Warns Q2 Earnings Miss

By Sara Smith
Apr 23, 2008 22:24 PM GMT
Starbucks says it now expects full-year earnings per share to be

Starbucks says it now expects full-year earnings per share to be "somewhat lower" than the 87 cents per share recorded the previous year.

Starbucks says its second-quarter earnings will likely miss analyst expectations, as store traffic fell in the U.S. amid weak consumer spending.

"The current economic environment is the weakest in our company's history, marked by lower home values, and rising costs for energy, food and other products that are directly impacting our customers," said Howard Schultz, chairman, president and CEO.

The Seattle-based coffee chain is forecasting second-quarter earnings of 15 cents per share on a 12% revenue increase. Analysts polled by Thomson Financial were predicting a profit of 21 cents per share for the quarter ended March 30.

Starbucks says it now expects full-year earnings per share to be "somewhat lower" than the 87 cents per share recorded the previous year. Analysts expected a profit of 97 cents per share.

The company said sales in stores open at least a year fell in the mid-single-digit range in the U.S., due to a decline in traffic.

Restructuring costs also hurt earnings by 3 cents per share in the second quarter.

In after-hours trading Wednesday, shares in Starbucks had fallen more than 10 percent, dropping $1.85 to $16.

Filed Under:   Starbucks News   Current World News


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Starbucks said that it had a mid-single decline in revenue following downturns in the California and Florida housing markets. Both states account for 32 percent of its U.S. retail revenue.