The siren song of pricey triple-foam lattes is no longer luring consumers to the shores of
, as the company announced a sharp decline in its second-quarter earnings. Starbucks profit fell 77% to $25 million, or 3 cents a share, compared with $108.7 million, or 15 cents, the same period last year.
Revenue for the quarter declined 8% to $1.96 billion from $2.14 billion last year.
While Starbucks has acknowledged that consumers are shying away from high-end drinks, their new value message apparently has also been poorly received.
Indeed, Starbucks is
no longer the growth darling of Wall Street, according to a RealMoney.com report earlier today, which argues that while the company has spent the better part of the past two years resizing and restructuring its operations, more work in that area is needed.
Shares of Starbucks were up 1.5% in late-day trading to $13.69.
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