Starbucks shares tumbled Wednesday after the company lowered its 2020 earnings forecast.
In a presentation to Goldman Sachs’ Global Retaining Conference, the Seattle-based coffee giant said it expects adjusted earnings to grow less than 10% in its 2020 fiscal year, which begins Oct. 1. Its prior outlook was for 13% growth.
Wall Street had been anticipating 10.6% earnings growth in the 2020 fiscal year, according to analysts polled by FactSet.
Starbucks Corp. said the change was due to two one-time items: accelerated share repurchases and tax benefits that boosted 2019 earnings. Starbucks completed a $2 billion share repurchase program in June, pulling it ahead of the 2020 fiscal year.