Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published Monday, November 24, 2008 at 12:00 AM

Comments (0)     E-mail article     Print view

Starbucks expects sales in existing cafes to drop in 2009

Seattle coffee company says global recession will cut into sales at existing Starbucks cafes.

Seattle Times business reporter

Starbucks expects same-store sales to continue falling in fiscal 2009, given that "a several global recession of uncertain length now appears likely," the Seattle coffee chain said in a securities filing today.

Analysts and investors use same-store sales as a gauge of whether growing companies are doing well at existing stores.

Starbucks saw an annual drop in same-store sales in fiscal 2008. The 3 percent decline contributed to a 53 percent profit drop for the year to $315.5 million.

The company said on Nov. 10 that it can sustain another 7 percent drop in same-store sales without profits dropping, which some analysts took as evidence that Starbucks has done sufficient cost-cutting.

Executives have not said how much further they expect same-store sales to drop.

In Monday's filing, Starbucks said, "As a retailer that is dependent upon consumer discretionary spending, the company expects to face an extremely challenging fiscal 2009 because of these economic conditions."

Melissa Allison: 206-464-3312 or mallison@seattletimes.com

Copyright © 2008 The Seattle Times Company

More Business & Technology headlines...

E-mail article Print view      Share:    Digg     Newsvine

Comments
No comments have been posted to this article. Start the conversation.

advertising

Nintendo re-enlists Mario, savior of video-game industry

Verizon-Frontier deal stirs concern among consumers

Brier Dudley: 'Guitar Hero' founder excited about future

NEW - 11:03 PM
Hutch gets $10M from Bezos family for immunotherapy research

Interface: Socrata helps public agencies share data

Advertising

Video

Raw Video | Real Salt Lake receives the MLS Cup trophy
Real Salt Lake is handed the 2009 MLS Cup trophy at Qwest Field, November 22, 2009.

Raw Video | Real Salt Lake fans celebrate
Real Salt Lake fans enter Qwest Field
Raw Video | MLS Cup Opening Ceremony
LA Galaxy's David Beckham
Real Salt Lake's Kyle Beckerman
MLS trophy arrives in Seattle
Chittenden Locks Inspection
Full interview with New Moon actors
Interview with New Moon actors

Marketplace

nwautos

2009's most fuel-efficient sedansnew
Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment

Open Houses

Find this weekend's open house listings.
Or search by location:

 
Most read
Most commented
Most e-mailed
 
 
Advertising