Starbucks Reports Decline in Profit
(MENAFN) Starbucks' share price saw a 7 percent decline in pre-market trading on Tuesday following the announcement of a 50.3 percent drop in net profit year-over-year for the first quarter.
This sharp decline in profits raised concerns about the company’s financial performance.
In addition to the reduced net profit, Starbucks reported a 45.3 percent decrease in operating income, as outlined in its most recent financial statement.
The company’s financial results reflect a significant setback, prompting a response from its leadership.
Cathy Smith, the Chief Financial Officer of Starbucks, expressed the company’s awareness of the gap between current performance and its full potential.
She emphasized, “While our financial results are far from Starbucks’ potential, we are working to build back a better business,” acknowledging the substantial shortfall.
CEO Brian Niccol reinforced this sentiment, stating that while the current numbers do not fully represent the changes being made, there are ongoing efforts to improve operations.
“We’re testing and learning at speed, and we’re seeing changes in our coffeehouses,” he shared.
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