reported a sharply lower fiscal first quarter profit on Wednesday and announced plans to close 300 stores -- 200 in the U.S.
The Seattle-based coffee purveyor posted net income for the fiscal first quarter of $64.3 million, or 9 cents per share, compared with a profit of $208.1 million, or 28 cents per share, in the year-earlier period.
Shares fell 23 cents to $9.52 in after-hours trading after closing the regular session up 50 cents to $9.65.
The company reported non-GAAP earnings per share of 15 cents. Analyst averages estimates were for 17 cents.
Revenue fell 6% to $2.6 billion. The store-closure announcement follows plans announced in July to shut 600 underperforming stores in the U.S. The planned store closures and reduced openings in 2009 could result in as many as 6,700 company layoffs, the company said.
Against the Grain: Sell Starbucks!
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"In the midst of the weakening global consumer environment, Starbucks is following a well-developed plan to strengthen our business through more efficient operations and by preserving the fundamental strengths and values of our brand," said Howard Schultz, chairman and CEO. "We remain focused on driving the discipline and rigor necessary to create long-term shareholder value, and we are taking aggressive steps to excite customers by providing relevant value and innovation, even during this challenging time."
The company plans to further reduce its fiscal 2009 store openings in the U.S. to 140 from its previous target of 200. Internationally, the company now plans to open 170 new stores in fiscal 2009, down from 270.
This article was written by a staff member of TheStreet.com.