BUZZ-Starbucks falls after posting bigger-than-expected quarterly global sales drop

Reuters
30 Apr
BUZZ-Starbucks falls after posting bigger-than-expected quarterly global sales drop

Updates

** Shares of Starbucks SBUX.O fall 6.3% to $79.41 in after-market trading

** Posts bigger-than-expected drop in Q2 global comparable sales as demand remained sluggish in the United States amid rising macroeconomic uncertainty

** Total same-store sales declined 1% in the second quarter vs analysts' average estimate of a 0.26% fall, according to data compiled by LSEG

** Co also reports quarterly adjusted EPS of 41 cents, missing estimates of 49 cents

** However, international comparable sales rose 2%, compared with estimates of a 1.13% drop

** Co says it is taking actions to minimize tariffs, including further diversifying, redirecting coffee shipments

** Also says it is working on strengthening its supply chain, localizing and moving production as needed

** Stock has fallen ~7% YTD

(Reporting by Sriparna Roy, Arsheeya Bajwa and Neil J Kanatt in Bengaluru)

((Sriparna.Roy@thomsonreuters.com;))

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