Starbucks loses 579 million between April and June due to pandemic

The American chain of coffee shops Starbucks registered losses of 678.4 million dollars (579 million euros) between April and June, the company’s third fiscal quarter, compared to the attributable net profit of 1,372.8 million dollars (1,171 million euros ) accounted for by the multinational in the same period of 2019 as a consequence of the impact of the restrictions to contain the pandemic in its business.

Starbucks’ turnover in the third quarter of its fiscal year reached 4,224 million dollars (3,604 million euros), 38% less than a year earlier. The chain of coffee shops estimated at 3,100 million dollars (2,645 million euros) the revenue lost in the quarter due to the impact of Covid-19.

The establishments directly operated by Starbucks registered a drop of 37.8% in sales, to 3,444.4 million dollars (2,939 million euros) and the franchised establishments reduced their income by 58.5%, to 300.5 million dollars (256 million euros).

Starbucks’ comparable turnover in the US market during the months of April to June decreased 41% year-on-year, while the company’s international revenue decreased 37%.

Thus, in the first nine months of its fiscal year, Starbucks obtained an attributable net profit of 535.7 million dollars (457 million euros), 80.8% less than in the same period of the previous year, while its income fell 12.4%, to 17,314.9 million dollars (14,776 million euros).

“We are pleased to note that the vast majority of Starbucks stores worldwide have reopened and our global business is steadily recovering, demonstrating the relevance of the Starbucks brand and the trust we have built with our customers,” he said. Kevin Johnson, President and CEO, Starbucks.

Looking to the last quarter of its fiscal year, the Seattle multinational expects to record a 12% drop in its comparable sales, which would mean a decrease of 17% in the year as a whole, including a 12% decrease in the quarter and 17% in the year in the US market, while internationally its comparable sales will fall between 10% and 15% quarterly and between 20% and 25% in the year.

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