Starbucks on Wednesday reported a 7 percent drop in global comparable sales for the fourth quarter as the coffee chain struggles to revive demand for its pricey lattes in the key US and China markets.
Last week, Starbucks reported preliminary fourth-quarter results and suspended its annual forecast through the next fiscal year as new CEO Brian Niccol tries to steer the company toward the path to growth.
The Seattle-based company’s strategy to drive demand through promotions and improved loyalty program offers fell flat in the face of muted spending from cost-conscious consumers.
Starbucks is also facing an uphill battle in China, where it is dealing with a choppy macroeconomic recovery and stiff competition from local brands.
Comparable sales in China, the company’s second-largest market after the US, declined for three straight quarters, falling 14 percent in the fourth quarter.
Investors, however, are betting on seasoned industry veteran and ex-Chipotle Mexican Grill head Niccol to simplify the company’s leadership and operating structure, and reinvigorate the coffee-house culture at Starbucks’ US stores.
Shares of the company have risen about 26 percent since Niccol replaced Laxman Narasimhan as CEO in a surprise announcement in August. They were down about 1 percent in extended trading on Wednesday.
International comparable sales fell 9 percent in the fourth quarter, compared with expectations of a 6.5 percent drop, as per data compiled by LSEG.
Starbucks’ loyalty program growth was also tempered in the fourth quarter, with 90-day active members in the US remaining flat sequentially. That compares with a 3 percent sequential rise reported in the third quarter.
The company’s net income fell to $909.3 million, or 80 cents per share, from $1.22 billion, or $1.06 per share, a year earlier in the fourth quarter ended Sept 29.
Starbucks reports drop in comparable sales, earnings as global demand suffers
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Starbucks reports drop in comparable sales, earnings as global demand suffers
- The Seattle-based company’s strategy to drive demand through promotions and improved loyalty program offers fell flat
Mick Jagger’s fiancee ‘physically attacked’ at exclusive London club
- Melanie Hamrick, 38, dined with a friend before heading to private members’ club Annabel’s in Berkeley Square, Mayfair, where the incident happened
- The author, choreographer and former ballerina has been in a relationship with the 82-year-old Rolling Stones singer since 2014 and they have a 9-year-old son together
LONDON: Melanie Hamrick, Rolling Stones singer Mick Jagger’s fiancee, said she was attacked at an elite and exclusive private member’s club in Mayfair, central London.
The 38-year-old said the incident on Tuesday at Annabel’s in Berkeley Square had left her heartbroken and shaken.
In a message posted later that night on Instagram, she wrote: “This is incredibly hard to share, but I was physically attacked at Annabel’s Mayfair tonight.
“I’m so thankful to my friends for protecting me. Two people grabbed me from behind and thank God for the good people who stepped in to help me.
“I’m shaken, sad and heartbroken that people can treat each other this way.”
The message was deleted a few hours after it appeared.
Hamrick has been in a relationship with 82-year-old Jagger since 2014, and she confirmed in April last year that they became engaged about two or three years earlier. They have a son, Deveraux, who was born in 2016.
Hamrick is a choreographer, author and former ballerina who performed with the American Ballet Theatre for 15 years before retiring in 2019.
Before the incident on Tuesday, she had dined with a socialite friend, Emma Thynn, before heading to Annabel’s. Sources at the venue said staff were not notified of an attack. The Metropolitan Police said it had not receive any report of an incident, the Daily Mail newspaper reported.
The incident is believed to have taken place outside of the club. In the past few weeks there has been a series of daytime heists targeting luxury goods stores across London. It is not known if the incident involving Hamrick was related to these.
However, the area around the prestigious Berkeley Square has become one of the worst in London, and even in Europe, for robberies and street crime, the Daily Mail said. Official figures show that people in the area were 30 times more likely to fall victim to crime compared with those in other parts of the city, the newspaper added.
Numbers of thefts and robberies, mainly of mobile phones, have tripled in London over the past four years, with tens of thousands of reported cases, particularly in the upmarket Mayfair and St James’s areas.
Organized criminal gangs have reportedly been targeting high-value luxury brands such as Rolex and Yves Saint Laurent across London. Some visitors have even hired private security while visiting the city.
Last month, the Daily Mail reported that Tom Cruise, 63, had abruptly moved out of his £35 million ($47 million) luxury apartment in One Hyde Park, a high-rise in West London, over safety fears.
