Starbucks Corp. produced better earnings than expected in the fiscal third quarter, despite a massive drop-off in comparable sales in China Starbucks
SBUX,
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reported fiscal third-quarter profit of $912.9 million, or 79 cents a share, on sales of $8.15 billion, up from $7.5 billion a year ago. After adjusting for restructuring, impairment and integration costs, the coffee-store chain reported earnings of 84 cents a share, a decline from $1.01 a share a year ago. Same-store sales, an important metric for retail chain stores, came in at 3%, as sales tanked in China during COVID-related lockdowns.
Analysts on average were projecting adjusted earnings of 77 cents a share on sales of $8.15 billion, with same-store sales growth of 3.2%, according to FactSet. Starbucks shares increased about 1% in after-hours trading immediately following the release of the results, after closing with a 1.4% decline at $83.71. “We have clear line of sight on what we need to do to reinvent the company, elevate our partner and customer experiences and drive accelerated, profitable growth all around the world,” interim Chief Executive Howard Schultz said in the announcement. “The Q3 results we announced today demonstrate the early progress we have made in just four short months.” Starbucks shares have largely been in a holding pattern since March 16, when founder Schultz was reinstated as chief executive amid a unionization push at Starbucks locations around the U.S. The stock has declined 3. …