(Reuters) – Starbucks Corp (NASDAQ:) on Tuesday reported a bigger-than-expected fall in quarterly comparable sales as the rising number of coronavirus cases in the United States kept customers at home, sending its shares 2% lower in extended trading.
The world’s largest coffee chain’s global same-store sales fell 5% in the first quarter, more than analysts’ estimates of a 3.4% decline, according to Refinitiv IBES data.
The second wave of COVID-19 infections and accompanying restrictions dented traffic at the coffee chain’s stores, hampering its efforts to boost demand through product launches and new drive-thrus.
Comparable sales declined 6% for the Americas region, compared with a 5.2% fall expected by analysts.
But in China, Starbucks’ biggest growth market, comparable sales rose 5% as the company benefited from the popularity of its rewards program and the return of pre-coronavirus consumer habits.
For the second quarter, Starbucks said it expects U.S. comparable sales to rise between 5% and 10%, while in China they were forecast to grow nearly two-fold a year after the pandemic hit the region.
Starbucks also said Chief Operating Officer Roz Brewer would be leaving the company next month to take a chief executive officer role at another company.
Net revenue fell 5% to $6.7 billion, missing expectations of $6.93 billion.
Net earnings attributable to Starbucks fell to $622.2 million, or 53 cents per share, compared with $885.7 million or 74 cents per share, a year earlier.
On an adjusted basis, the Seattle-based company earned 61 cents per share, 6 cents above estimates.
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