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Starbucks net off 97 percent
November 10, 2008
SEATTLE — Revenues at coffeehouse operator Starbucks were $2.5 billion for the company's fourth quarter ended Sept. 28, up slightly compared with revenues of $2.4 billion for the 2007 fourth quarter. For the year, revenues were $10.4 billion, up 11 percent compared with revenues of $9.4 billion for 2007.
Net income for the quarter was $5.4 million, off 97 percent compared with revenues of $158.5 million for the 2007 fourth quarter. For the year, net income was $315.5 million, off 53 percent compared with net income of $672.6 million for 2007.
Comparable-store sales fell 3 percent for the year.
Restructuring charges totaled $99.2 million in the fourth quarter. Of that amount, $38.6 million was related to plans to close approximately 600 underperforming U.S. company-operated stores. Total lease exit costs are expected to be up to $170 million, compared with previous estimates of $120 million to $140 million.
The first 205 of these stores were closed during the fourth quarter, with the approximately 400 remaining U.S. store closures expected to occur by the end of fiscal 2009.
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