This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7721166.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Starbucks sees profits evaporate | Starbucks sees profits evaporate |
| (10 minutes later) | |
| Starbucks has seen its fourth-quarter profit almost wiped out by the cost of closing under-performing outlets and falling customer numbers. | Starbucks has seen its fourth-quarter profit almost wiped out by the cost of closing under-performing outlets and falling customer numbers. |
| Reporting its global results for the three months to 28 September, its net profits totalled $5.4m (£3.5m), down from $158.5m a year earlier. | |
| The US coffee giant said $105m of the fall was due to the cost of its continuing restructuring work. | The US coffee giant said $105m of the fall was due to the cost of its continuing restructuring work. |
| However, same-store sales were down in the US, falling 8% from a year earlier. | However, same-store sales were down in the US, falling 8% from a year earlier. |
| Fourth-quarter revenues were up 3% to $2.5bn. | Fourth-quarter revenues were up 3% to $2.5bn. |
| Healthier portfolio | |
| Starbucks announced back in the summer that it would close 600 underperforming US outlets and 61 in Australia, as part of 1,000 job cuts, as it continued efforts to turnaround its fortunes. | Starbucks announced back in the summer that it would close 600 underperforming US outlets and 61 in Australia, as part of 1,000 job cuts, as it continued efforts to turnaround its fortunes. |
| The firm's efforts to return to growing sales and profits are being led by founder and chief executive Howard Schultz who returned to lead the company at the start of this year. | |
| "With a re-architected cost structure...we began the new fiscal year with a healthier store portfolio that will allow for operating margin expansion," he said. | |
| He said the firm would achieve this growth in 2009 "despite a global economic environment which shows no immediate signs of improvement". |