Starbucks (NASDAQ:SBUX) shares fell over 3% in pre-market today after the company released disappointing preliminary results for its fourth quarter. The coffee giant reported declines across key metrics, including same-store sales, net revenue, and profits, as it faced weakening demand in the US market.
For Q4 2024, Starbucks saw global comparable store sales drop by 7%, with consolidated net revenues slipping 3% to $9.1 billion. The earnings per share fell by 24%, landing at $0.80 on a constant currency basis.
In the US, comparable sales declined by 6%, driven by a significant 10% drop in transaction volume, although this was slightly offset by a 4% increase in average ticket size. In China, Starbucks experienced an even sharper downturn, with sales plunging 14% for the quarter.
In response to these results, the company suspended its guidance for the upcoming fiscal year as new CEO Brian Niccol focuses on steering the business through declining demand for its premium offerings. Starbucks is now entering a period of recalibration to address the challenges posed by slowing sales and evolving consumer preferences.