It’s been a disappointing start to Pumpkin Spice Latte season for Starbucks.
The Seattle coffee giant on Tuesday reported weaker-than-expected sales in its fiscal fourth quarter, which ended Sept. 29. It also said it would suspend financial guidance for its 2025 fiscal year to give its new Chairman and CEO, Brian Niccol, time to assess the business.
The financial results were preliminary. Starbucks plans to release full results for the July-September period and host a conference call with investors on Oct. 30.
Customer traffic was sluggish in the US, where Starbucks saw a 6 percent decline in same-store sales, or sales at stores open at least a year. The company said expanded fall product offerings such as Iced Apple Crisp Nondairy Cream Chai and more frequent in-app promotions didn’t drive more visits.
The Pumpkin Spice Latte, which returned to US stores on Aug. 22 and is usually a reliable booster of traffic, didn’t seem to help.
In China, same-store sales fell 14 percent as consumers pulled back on spending or visited cheaper rivals, Starbucks said.
In a video message released by the company, Niccol — a former Chipotle CEO who joined Starbucks last month — said Starbucks’ problems are “very fixable and that we have significant strengths to build on.”
Niccol said Starbucks needs to improve staffing, remove bottlenecks and simplify operations for its baristas, especially during the morning rush. Mobile ordering should be refined so it doesn’t overwhelm the café experience, he said. Niccol also said Starbucks needs to simplify its “overly complex menu.”
“We know how to make these improvements, and when we do, we know customers will visit more often,” he said.
Niccol said Starbucks plans to change its marketing to focus less on Starbucks Rewards customers and more on highlighting the brand’s handcrafted drinks and coffee innovation.
The company said its revenue fell 3 percent to $9.1 billion in the July-September period. That was lower than the $9.4 billion Wall Street was expecting, according to analysts polled by FactSet.
Starbucks said its adjusted earnings fell 24.5 percent from the same period a year ago to 80 cents per share. That also fell short of analysts’ forecast of $1.03 per-share earnings.
Starbucks reports weak quarterly results despite the arrival of Pumpkin Spice Latte season
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Starbucks reports weak quarterly results despite the arrival of Pumpkin Spice Latte season
Messi to unveil 21-meter statue of himself on India ‘GOAT’ tour
- Iron sculpture in Kolkata is part of a so-called GOAT Tour that will take in four Indian cities
- Messi won his second consecutive Major League Soccer Most Valuable Player award this week
KOLKATA: Lionel Messi will unveil a 21-meter (70-foot) statue of himself in India on Saturday as he embarks on a three-day tour of the country that has sparked a fan frenzy.
The iron sculpture in Kolkata, which shows Messi holding aloft the World Cup, is part of a so-called GOAT Tour that will take in four Indian cities and a possible meeting with Prime Minister Narendra Modi.
The 38-year-old Argentina and Inter Miami superstar will unveil the monument virtually rather than in person for security reasons.
A “Hola Messi” fan zone has also been set up in Kolkata where on display is a life-sized replica of Messi sat on a throne.
The hall also recreates his Miami home, complete with mannequins of his family members.
Football fan Samir Nandy said it would be “a dream come true” to catch a glimpse of his idol.
“Legends are not made by success alone. It is his resilience that made me believe in him,” Nandy, 64, said in Kolkata.
“The statue is a fitting tribute to him.”
Monti Paul, the statue’s main sculptor, said the structure was built inside 40 days.
“It’s a matter of pride to build the sculpture of Messi. It’s the tallest statue I have made,” he said.
The eight-time Ballon d’Or winner will also meet Bollywood superstar Shah Rukh Khan and former India cricket captain Sourav Ganguly during his whirlwind trip to Kolkata.
Ahead of his arrival, Messi said it was an honor to visit India and interact with the fans.
“India is a very special country and I have good memories from my time there 14 years ago — the fans were fantastic,” Messi said in a statement.
“India is a passionate football nation and I look forward to meeting a new generation of fans while sharing the love I have for this beautiful game.”
After Kolkata, where Messi will play a short friendly match, he will head to Hyderabad, Mumbai and New Delhi.
In Hyderabad he will attend a concert in his honor and play another friendly.
He is reportedly scheduled to meet Modi in the capital.
Messi won his second consecutive Major League Soccer Most Valuable Player award this week after propelling Inter Miami to the MLS title and leading the league in goals.
The former Barcelona and Paris Saint-Germain attacker will spearhead Argentina’s defense of the World Cup in June-July in North America.
