Starbucks Corporation reported financial results for its 13-week fiscal second quarter ended March 31, 2024. Consolidated net revenues declined 2%, to $8.6 billion, or a 1% decline on a constant currency basis.
“In a highly challenged environment, this quarter’s results do not reflect the power of our brand, our capabilities or the opportunities ahead,” commented Laxman Narasimhan, chief executive officer.
“It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us. We have a clear plan to execute and the entire organization is mobilized around it. We are very confident in our long-term and know that our Triple Shot Reinvention with Two Pumps strategy will deliver on the limitless potential of this brand,” Narasimhan added.
Global comparable store sales declined 4%, driven by a 6% decline in comparable transactions, partially offset by a 2% increase in average ticket. International comparable store sales declined 6%, driven by a 3% decline in both comparable transactions and average ticket; China comparable store sales declined 11%, driven by an 8% decline in average ticket and a 4% decline in comparable transactions.
The company opened 364 net new stores in Q2, ending the period with 38,951 stores: 52% company-operated and 48% licensed.
“While it was a difficult quarter, we learned from our own underperformance and sharpened our focus with a comprehensive roadmap of well thought out actions making the path forward clear,” commented Rachel Ruggeri, chief financial officer. “On this path, we remain committed to our disciplined approach to capital allocation as we navigate this complex and dynamic environment,” Ruggeri added.
In March, the company announced its new geographic leadership and global support structure, which included the appointments of Michael Conway as chief executive officer, North America, and Brady Brewer as chief executive officer, Starbucks International, as well as other leadership changes to further strengthen the support of long-term growth. The company also achieved a milestone towards its environmental goal of certifying 10,000 Greener Stores globally by 2025, including over 6,000 certified Greener Stores in more than 40 markets globally.