Retail
Starbucks Fails to Satisfy Wall Street's Fix
TSC Staff
07/06/06 - 05:54 PM EDT
Starbucks (SBUX Quote) posted a 6% rise in June same-store sales but failed to meet Wall Street's lofty expectations, sending shares down in late trading.
Analysts polled by Thomson First Call reportedly expected a 7% rise in June comps. Starbucks' own forecast calls for monthly same-store sales growth of 3% to 7%.
The coffee retailing giant reported total June revenue of $751 million, up 22% from $618 million a year earlier.
"Sales were primarily driven by the popularity of our seasonal handcrafted blended beverages," said Jim Donald, president and chief executive, in a statement. "In addition, food sales were a strong contributor, from both expanded lunch locations and enhanced bakery offerings."
Starbucks shares recently dropped $1.32, or 3.5%, to $36.56 in after-hours trading.