Kevin Johnson, who succeeded Howard Schultz as CEO this month, on Thursday presided over an earnings call where the company cut its full-year profit target on the heels of disappointing second-quarter sales and stalling growth from its main business in the United States.
The company's ever-crucial USA market sales saw tepid gains, a concern that was on the minds of investors ahead of the earnings reveal.
Revenue amounted to $5.3 billion in the fiscal second quarter, which ended April 2. That growth was not as strong as Wall Street had expected, though per-share earnings of 45 cents exactly matched expectations.
Overall, comparable store sales ticked up 3 percent in the US, missing Wall Street estimates of 3.7 percent.
"Teavana unfortunately is going to be part of the mall problem but Starbucks is insulated from it and we continue to open many, many Starbucks stores around the world", he concluded.
For the 13-week period ending April 2, Starbucks reported total net revenue grew 6% to $5.3 billion while same-stores sales were up 3% both globally and the key Americas market. "Our Teavana mall stores have not been immune with many reporting negative comps and operating losses for some time".
Starbucks paid $620 million in cash for Teavana in 2012. Internationally, Scott Harlan Maw, Starbucks executive vice president and chief financial officer, said Teavana sales are up 40 percent in Japan and China.
Shares in the company fell 4.9 per cent to US$58.30 after Starbucks also announced that it was reviewing its Teavana business after that chain's mall stores dragged down overall sales.
Domestically, Starbucks has been trying to improve its lunch selection. "But, the rate of the decline coming through last holiday and into the second quarter is worse than we had forecast and we are expecting further declines at a number of at-risk Teavana mall stores".
Johnson began the call by referencing a Wall Street Journal article that stated more retail stores have closed in the first quarter of calendar year 2017 than in all of 2016, and "that more retail stores are expected to close in the USA this year than closed in any year during the Great Recession that began in 2008". The company's measures to reduce congestion due to mobile orders have started showing results since March.
Starbucks attributed the decline in transactions to a change in its loyalty program that led to people no longer splitting their orders to tally additional rewards points. In Q2 2107, the company saw 8% growth in average spend per active reward member - the highest growth over a prior year ever. The deal, much like Starbucks' other deals, was aimed mostly at bringing a product into its stores.
"As we enter Q3, Mobile Order & Pay continues to be a powerful driver of comp, revenue, and attach".
Wednesday's loss dropped Boston two games behind NY in the loss column and three behind the division leading Baltimore Orioles. Reigning AL Cy Young victor Rick Porcello lost his third straight start, giving up three runs - two earned - in 6 2/3 innings.
O'Leary was considered the most well known candidate in the race even though he did not participate in a single candidate debate. According to sources with both campaigns, those discussions led to a phone call between the candidates on Monday night.
On Monday, Kelly Sotherton was on the brink of getting another Olympic medal due to Tatyana Chernova's drugs cheat. It's a shame Kelly didn't get her moment on the podium, but lovely to see her awarded the medals she deserves.
The greatest wide receiver in Redskins history, Monk also goes down as one of the greatest in football history. Kratch also mentions that the Giants only had "limited interaction" with Robinson during the draft process.
He couldn't even go straight up on a jumper over the diminutive Isaiah Thomas without pump-faking, throwing off his rhythm. It would be Canaan's first start of the season. "That was my goal this game , and I feel like I did it", Bradley said.
Good rival, good quality and a long run in the Premier League without defeat". "And to make sure we finish in the top four". Mourinho believes the situation has helped galvanise the spirit among the players he does have at his disposal.
A few weeks ago, Instagram updated its messaging service to be more like Snapchat's with unified ephemeral and direct messaging. Facebook boasts 1.8 billion users, which tops social media rivals like Snapchat (375 million) and Twitter ( 328 million ).
Schools say Mauldin High School say they were on partial lockdown as a precaution on the advice of Mauldin Police. According to the Buchanan County Sheriff's Office, Soules was located shortly after at his home near Arlington.
She said the goal is to ensure fewer kids end up in care, but support needs to be there for those who do. Horgan said his party tried six times to get legislation passed to ban union and corporate donations.
Every luminary bag at Relay for Life represents a loved one, culminating in a lovely ceremony that is a moment of reflection. Lynn Husted, who is coordinating the Relay For Life for Lamar County, said the Sumrall High Football Field will be full.
Because the pitch hit Machado's bat, it was ruled a foul ball so he had to come back to the batters box and finish his at-bat. We won't have to wait long to see where all this is going, as Baltimore will be at Fenway for a four-game series next week.
It's a very good opportunity for us and China to raise issues. "We can not on our own enforce the arbitral judgment". The goal now is to complete a framework for the code of conduct in the South China Sea by June. "Here's how it is".
The "13 Reasons Why" actor, who played Reggie in the first season, will be "virtually unrecognizable" in Riverdale Season 2. He added that the new Reggie will have "big shoes to fill", and that everyone at Riverdale wishes Ross the best.
Humphrey became the first Alabama player taken off the board when the Baltimore Ravens selected him with the 16th overall pick . Arguably the best player on the Crimson Tide in 2016, Jonathan Allen led all interior linemen with 67 pressures.
At that time, Apple was said to be working with several US -based banks about the service, but nothing came of the talks. Person-to-person payment services, however, have become incredibly popular, especially amongst millennials.
Nintendo also called out 1-2 Switch, though all it said was that the game is "generating buzz"; no sales numbers were provided. Nintendo made the disclosure in its new earnings report [PDF] for the fiscal year 2016, released on Thursday, April 27.
However, he is aware that people's opinions differ when it comes to taxpayer-funded abortions, the Associated Press relays. The governor has said he would veto the bill due to concerns over expanding access to Medicaid recipients.
The stock now shows its YTD (Year to Date) performance of 29.84 percent while its Weekly performance value is 2.06%. The company's last traded volume of 10.67 million shares was above it's an average volume of 5.79 million shares.
Student protests in Kashmir Valley is refusing to subside with fresh clashes reported from nearly all the regions on Wednesday. Mass protests then broke out as a result, with students from other colleges, including a girls college, taking part.
The woman had somehow managed to climb up to the top of the boom and then slide down a cable to a pulley device. Authorities said they are unsure how Lazo managed to climbed the crane and of the motive behind the act.
He'll have his work cut out for him, with a hot new racer Jackson Storm (Armie Hammer), getting all the attention. A new trailer has dropped, and it promises some deep character study in a movie about talking cars.