Starbucks expects to report its worst decline in sales since the pandemic as wary American consumers shun the coffee shop chain’s $5.95 lattes.
The coffee retailer suspended its annual forecast after global same-store sales fell 7 per cent in the fourth quarter, according to preliminary results unexpectedly published on Tuesday.
The poor performance was led by a 6 per cent decline in comparable sales in the US, its biggest market.
In China, same-store sales fell 14 per cent as the coffee store faced intensified competition and a weak economy that impacted consumer spending.
Starbucks’ shares tumbled $3.66, or 3.8 per cent, to $93.16 in after-hours trading after the company released the results. The decline in same-store sales represents the sharpest fall since the fourth quarter