Original title: first time in 7 years! Starbucks Corp will close 400 stores permanently with a loss of more than $700 million in a single quarter. Source: foresight.

Original title: first time in 7 years! Starbucks Corp will close 400 stores permanently with a loss of more than 700 million US dollars in a single quarter.

Due to the influence of novel coronavirus's pandemic, Starbucks Corp's store sales plummeted 40%, resulting in Starbucks Corp's loss of more than 700 million US dollars in the third fiscal quarter, Starbucks Corp's first quarterly loss in seven years.

But Starbucks Corp seems optimistic about the future, raising his adjusted earnings forecast for the fourth quarter.

Starbucks Corp executives say they expect a bigger recovery in same-store sales in China and the United States at the end of the first and second quarters, about a year after the crisis. as long as there is no new, sustained wave of infections or severe economic damage. Profit margins are expected to reach this level in the next two quarters.

"We still have a long way to go to achieve a full recovery, but we are optimistic based on the strength of our brand and the strategies and initiatives that we must promote sales and improve profit margins," said Pat Grismer, chief financial officer.

The Seattle-based global coffee shop chain reported a loss of $704 million in the quarter ended June, down about 17% from a year earlier. Pandemic-related costs, such as baristas' paid vacations and additional security measures, are a drag on the company's profits.

Global same-store sales plunged 40% in the quarter. Transactions in stores that have been open for at least 13 months fell by 51%, but consumers spent more on orders, with the average check up 23%.

Same-store sales in the United States fell by 40% in the quarter. The company temporarily closed most of its coffee shops in the United States between mid-March and mid-April, offering only takeout services. Reopened stores tend to reduce business hours and restrict business.

According to media reports in June, Starbucks Corp said that Starbucks Corp will permanently close 400 stores in the United States and Canada in the next 18 months, and will halve the number of stores planned for this year, that is, from 600 to 300.

(article source: foresight Network)