Source: Finance Federation Author: Ma Lan
① Starbucks' first-quarter earnings report shows that the company's Q1 net revenue was 8.56 billion US dollars, less than analysts' expectations of 9.13 billion US dollars; ② Starbucks experienced a decline in sales in many markets, with sales in the Chinese market falling 11% year on year and US sales falling 4%; ③ the investment bank said that Starbucks made shocking mistakes in all key indicators.
Up to now, the US has generally been a bit disappointing for this year's Q1 fiscal quarter, but we have seen financial reports that have already made investors shake their heads$Starbucks (SBUX.US)$They may all have to be conceded.
Vital Knowledge analyst Adam Crisafulli said in the latest report that the results announced by Starbucks this quarter are probably the worst of any major company so far.
Investment bank William Blair also downgraded Starbucks' stock recommendation rating on the grounds that the coffee chain made shocking total mistakes in all key indicators.
According to Starbucks earnings reports, the company's sales experienced a quarterly decline for the first time since 2020. Sales in the first quarter (fiscal quarter) fell 4% year over year, while analysts expected a 1.46% increase. Its sales performance in both China and the US was poor, with same-store sales falling 3% in the US and 11% in China.
Starbucks reported net revenue of $8.56 billion for the first quarter; analysts expected $9.13 billion; adjusted earnings per share for the second fiscal quarter were $0.68, and analysts expected $0.80.
Disappointing Wall Street
Starbucks shares fell more than 12% in pre-market trading on Wednesday, the biggest drop in Starbucks stock price since the COVID-19 pandemic broke out in March 2020.
In a conference call with investors on Tuesday, the company also lowered its full-year revenue growth forecast to a low single digit, and hinted that adjusted earnings per share may remain flat.
Since the new CEO, Laxman Narasimhan, took office more than a year ago, the company has lowered its performance guidelines several times, and the Q1 earnings report further highlights the severe reality that Starbucks is facing continuous consumer withdrawal.
Its chief financial officer Rachel Ruggeri said that the colder than normal weather in January affected store visits across the industry, combined with greater savings from global consumers and the conflict in the Middle East, which had an impact on quarterly results.
He said that Starbucks was not satisfied with its performance in the first quarter, that the company would focus more and that its path forward was very clear. He added that Starbucks hopes to reverse the decline by focusing on meeting morning needs.
Jefferies stock analyst Andy Barish pointed out that Starbucks' Q1 earnings report was clearly a mistake, and there is currently no easy solution in sight. The question for the company and investors is whether these challenges are temporary or long-term, particularly in the Chinese market.
edit/lambor