The American company Starbucks announced financial results without expectations for the third quarter of the year, as revenues fell by 3.8% to reach 9.46 billion dollars.
The net profits fell sharply by 47% to record 558.3 million dollars, which came much less than the estimates of analysts of $ 732 million, according to Reuters.
Despite this weak performance, the company’s management stressed that the numbers do not fully reflect the progress it makes within the framework of the plan to restructure its business.
“While our financial results do not reflect after all the progress that we made, I see encouraging signals from within the American market confirming that we are going in the right direction,” said Brian Nicole, CEO of the company, during a call with financial analysts.
The data indicated that the sales of existing branches decreased by 2% in North America, while it remained stable globally, with a rise of 2% in the Chinese market due to an increase in the number of transactions, despite the decrease in the average value of the demand by 4%.
Financial Director, Cathy Smith, confirmed that the company records “concrete progress” in its strategy “Return to Starbucks”, explaining that tax costs affected the arrow’s profitability, and reduced it by 11 cents to reach only 49 cents.
Nicole said that the company is still in “early stages” of the recovery plan within the United States, but it is achieving increasing momentum internationally.
He revealed plans to launch new products that meet the needs of consumers throughout the day, not only during breakfast hours, from this year until next year, in an attempt to enhance revenues and improve customer experience.
