Revenue for the last quarter fell at Starbucks (SBUX) by 8% to $2.33 billion. Net earnings fell 77% to $25 million and earnings per share were down by the same percentage to $.03.
The numbers were slightly below Wall St. estimates.
Starbucks said that its cost savings plans were ahead of schedule as it reduced expenses by $120 million during the period.
The number that should concern Starbucks investors the most is that US comparable store sales were down 8% for the quarter.
While the company prides itself on cutting costs, total expenses only dropped 2% to $2.32 billion which included $152 million in restructuring fees. Not much of a cutting effort.
Investors were unhappy and the stock sold off 2% after hours.
Douglas A. McIntyre
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