Starbucks tumbles over 3.0% as poor sales in China weigh on earnings

6:57 PM 3 February 2023

Starbucks (SBUX.US) shares lost over 3.5% on Friday after the coffee chain reported weak financial figures for Q1 2023. Company earned 75 cents per share slightly below analysts’ estimates of 77 cents. Revenue rose 8.0% to $8.71 billion, however came in below Refinitiv projections of $8.78 billion due to dwindling demand especially in China, which is the second-largest market.

  • U.S. same-store sales: 10% versus 9.26% expected

  • International sales: -13% versus -3.87% expected

  • China sales: -29% versus -13.31% expected

  • Global comparable store sales rose by 5% YoY

  • The company opened 459 net new stores in the previous quarter, ending the period with 36,170 stores worldwide.

Highlights of Starbucks Q1 2023 earnings report. Source: Alpha Street

According to interim CEO Howard Schultz recent figures reflect "challenging global consumer and inflationary environments, a soft quarter for retail overall and the unprecedented, COVID-related headwinds that unfolded in China in Q1."

Chief Financial Officer Rachel Ruggeri said "excluding China, we had tremendous growth across markets." She also said the company's fiscal 2023 outlook remains unchanged.

Starbucks (SBUX.US) stock launched today's session sharply lower, however sellers struggle to break below 50 SMA (green line). As long as price sits above, resumption of upward move is possible. On the other hand, should break lower occur, next support to watch can be found around $100.85, which is marked with lower limit of the 1:1 structure and 23.6% Fibonacci retracement of the last upward wave. Source: xStation5

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits