Starbucks sees profits evaporate
Starbucks is struggling to turnaround its fortunes
Starbucks has seen its fourth-quarter profit almost wiped out by the cost of closing under-performing outlets and falling customer numbers.
Reporting its global results for the three months to 28 September, its net profits totalled $5.4m (£3.5m), down from $158.5m a year earlier.
The US coffee giant said $105m of the fall was due to the cost of its continuing restructuring work.
However, same-store sales were down in the US, falling 8% from a year earlier.
Fourth-quarter revenues were up 3% to $2.5bn.
Healthier portfolio
Starbucks announced back in the summer that it would close 600 underperforming US outlets and 61 in Australia, as part of 1,000 job cuts, as it continued efforts to turnaround its fortunes.
I am optimistic we are well positioned to weather this challenging economic environment
Starbucks chief executive Howard Schultz
The firm's efforts to return to growing sales and profits are being led by founder and chief executive Howard Schultz who returned to lead the company at the start of this year.
"With a re-architected cost structure...we began the new fiscal year with a healthier store portfolio that will allow for operating margin expansion," he said.
He said the firm would achieve this growth in 2009 "despite a global economic environment which shows no immediate signs of improvement".
Mr Schultz added: "I am optimistic we are well positioned to weather this challenging economic environment".
There are no happy-lattes. A big modified piece of meat is what people need, not overpriced coffee. Walking into starbucks is like walking into a giant commercial where you can actually imagine being on TV promoting Starbucks. Schulz may not have a life except his ambition, which is why he's basically a real dull guy though I haven't met him. If you want real coffe served by real people I suggest you go elsewhere. Or save money by drinking at home instead!!!
Success = Passion, Patience, Persistence! Apply this to your love life then your pocket book. Either that or start up your own dollar worshiping club.
Starbucks is struggling to turnaround its fortunes
Starbucks has seen its fourth-quarter profit almost wiped out by the cost of closing under-performing outlets and falling customer numbers.
Reporting its global results for the three months to 28 September, its net profits totalled $5.4m (£3.5m), down from $158.5m a year earlier.
The US coffee giant said $105m of the fall was due to the cost of its continuing restructuring work.
However, same-store sales were down in the US, falling 8% from a year earlier.
Fourth-quarter revenues were up 3% to $2.5bn.
Healthier portfolio
Starbucks announced back in the summer that it would close 600 underperforming US outlets and 61 in Australia, as part of 1,000 job cuts, as it continued efforts to turnaround its fortunes.
I am optimistic we are well positioned to weather this challenging economic environment
Starbucks chief executive Howard Schultz
The firm's efforts to return to growing sales and profits are being led by founder and chief executive Howard Schultz who returned to lead the company at the start of this year.
"With a re-architected cost structure...we began the new fiscal year with a healthier store portfolio that will allow for operating margin expansion," he said.
He said the firm would achieve this growth in 2009 "despite a global economic environment which shows no immediate signs of improvement".
Mr Schultz added: "I am optimistic we are well positioned to weather this challenging economic environment".
There are no happy-lattes. A big modified piece of meat is what people need, not overpriced coffee. Walking into starbucks is like walking into a giant commercial where you can actually imagine being on TV promoting Starbucks. Schulz may not have a life except his ambition, which is why he's basically a real dull guy though I haven't met him. If you want real coffe served by real people I suggest you go elsewhere. Or save money by drinking at home instead!!!
Success = Passion, Patience, Persistence! Apply this to your love life then your pocket book. Either that or start up your own dollar worshiping club.
Comments
Post a Comment