Starbucks cuts sales forecast after growth slows
NEW YORK — Starbucks trimmed its sales forecast Thursday after revenue came in lighter than expected in the most recent quarter.
The Seattle-based company said global sales rose 4 per cent at established locations, including in its flagship U.S. market, for its fiscal third quarter. It now expects the figure to increase in the mid-single digit percentages for the year. It previously forecast growth to be “somewhat above” that range.
In a conference call with analysts, Chairman and CEO Howard Shultz noted that compared with other times when the marketplace has been challenging, the current period, with its presidential-election uncertainty and “civil unrest with regard to race,” is different. He said the sense of community Starbucks has created should help the company.
The results come after the coffee chain revamped its rewards program in April, which some had speculated might drive away some customers.