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Starbucks Feels The Pain; Expects 46% Fall In Earnings, Pulls Full Year Guidance

From: finance.yahoo.com

Starbucks (SBUX) is expecting FQ2 adjusted earnings of $0.32 per share, almost half the $0.60 reported in the same period last year, due to the severe impact of the coronavirus pandemic. Starbucks also revealed that business disruption related to COVID-19 in China had an adverse impact to GAAP EPS for Q2 of $0.15 to $0.18.

However, the coffee chain warned that worse is still to come. “Based on the late-quarter onset of COVID-19 impacts to our business results in the U.S. and other markets globally—and as the flow-through impact of lost sales in the U.S. is materially greater than the flow-through impact of lost sales in China—we expect the negative financial impacts to Q3 to be significantly greater than they were in Q2 and to extend into Q4.”

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