Starbucks Sees 2Q EPS Falling by About 50%
April 08 2020 - 6:34PM
Dow Jones News
By Kimberly Chin
Starbucks Corp. said it expects a roughly 50% drop in
second-quarter earnings from the year prior due to a loss in sales,
as well as higher expenses, stemming from the Covid-19 outbreak's
disruption of operations.
For the quarter ended March 29, the company expects GAAP
earnings of 28 cents a share and adjusted earnings of 32 cents a
share. In last year's second quarter, Starbucks reported GAAP
earnings of 53 cents a share and adjusted earnings of 60 cents a
share.
The retailer said coronavirus-related business disruptions are
expected to shave off roughly 15 cents to 18 cents from its bottom
line in the second quarter. This includes expenses such as worker
compensation, inventory write-offs, supplier obligations and
safety-related items, among other things.
The company also projected second-quarter same-store sales in
the U.S. to decline by roughly 3% from the year-earlier period.
Most of the Covid-19-related effects on its business has come in
the final three weeks of its quarter, the company said.
Starbucks has withdrawn its fiscal 2020 guidance.
The company reports its second-quarter results on April 28.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
April 08, 2020 18:19 ET (22:19 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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