The chief executive is characterized by a sharp drop in sales.
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Coffee chain Starbucks presented figures for the second quarter, which ended March 31, after Wall Street closed on Tuesday evening.
Revenue fell to $8.56 billion in the quarter, down from $8.7 billion in the corresponding quarter last year. In advance, a turnover of 9.13 billion dollars was expected.
Earnings per share ended at 0.68 dollars, while a result of 0.79 dollars per share was expected.
The Starbucks share fell 11.0 percent in after-market trading at 10.40 p.m.
Global sales figures fell by four per cent in the quarter, while traffic to cafes fell by six per cent.
In the USA, the coffee chain’s sales fell by three per cent, while in China it was down a whopping 11 per cent in the quarter.
Very challenging quarter
– In a very challenging landscape, the results this quarter do not reflect the strength of our brand, says Laxman Narasimhan, CEO of Starbucks.
– This did not meet our expectations, but we understand the specific challenges and opportunities that lie ahead of us, he continues.
The coffee chain opened a total of 364 new outlets in the second quarter, according to the report. At the end of the quarter, Starbucks had a total of 38,951 cafes.
Starbucks will discuss the financial outlook for the rest of the year during an investor conference later one evening.
The coffee chain lists a number of possible risk factors that could affect future prospects, including unfavorable global or regional economic conditions, higher interest rates or higher inflation.
The Starbucks boss has previously stated that the company operates in very demanding times, and that it may take time to resolve the operational challenges.
Starbucks shares rose a cautious 0.18 percent on Wall Street before the figures were released on Tuesday. So far this year, the share is up 5.53 percent.
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