Another Soft Month at Starbucks

Same-store sales rise 7% in January from a year earlier.
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(SBUX) - Get Report

delivered same-store sales growth for January that, while strong, was slightly below Wall Street estimates.

Starbucks said same-location sales at company-owned stores rose 7% in the four weeks leading up to Jan. 30, about a percentage point below forecasts. Overall revenue was $452 million for the month, up 23% from last year.

The comps, while at the high end of Starbucks long-term target of 3% to 7%, sent the coffee chain's frothy stock down $2.20, or 4%, to $51.80 after hours. Starbucks' same-store sales rose 10% in its first fiscal quarter.

For the four months ended Jan. 30, comparable store sales rose 10%, while overall revenues were $2.0 billion, an increase of 24% from the year earlier.

"Starbucks strong January results reflect continuous innovation combined with the efforts of our partners that are a hallmark of the company's ongoing success," the company said. "As we approach the opening of our 9,000th store, we continue to believe in the long-term opportunity to share the Starbucks Experience in at least 30,000 Starbucks stores worldwide."