Starbucks Corp. (SBUX), the world’s largest specialty coffee retailer, Tuesday reported a loss for the third quarter, as same-store sales plunged 40% hurt largely by the coronavirus pandemic. Moving ahead, the company lifted its earnings outlook for the fourth quarter and full year 2020.
Seattle, Washington-based Starbucks reported third-quarter loss of $678.4 million or $0.58 per share compared to last year’s profit of $1.37 billion or $1.12 per share.
Adjusted loss for the quarter were $0.46 per share, compared to adjusted earnings of $0.78 per share last year. Analysts polled by Thomson Reuters expected loss of $0.59 per share for the quarter. Analysts’ estimates typically exclude one-time items.
Net revenues for the quarter dropped 38 percent to $4.22 billion from $6.82 billion last year. Analysts had a consensus revenue estimate of $4.06 billion for the quarter.
Global comparable store sales plunged 40 percent, as Americas dropped 41 percent and US were down 40 percent, while international comparable store sales were down 37%. Starbucks said it opened 130 net new stores globally, bringing total stores to 32,180 worldwide.
Looking forward, Starbucks expects fourth-quarter adjusted earnings of $0.18 to $0.33 per share, up from previous estimate of $0.15 to $0.40 per share. Analysts currently estimate earnings of $0.27 per share for the quarter.
For the full year 2020, the company expects adjusted earnings of $0.83 to $0.98 per share, up from previous estimate of $0.55 to $0.95 per share. Analysts currently estimate earnings of $0.88 per share for the quarter.
SBUX closed Tuesday’s trading at $74.64, down $1.82 or 2.38%, on the Nasdaq. The stock, however, gained $1.72 or 2.30%, in the after-hours trade.
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