SEATTLE & NEW ORLEANS - (Business Wire) In response to questions from reporters today about the economic climate in the United States and its impact on Starbucks (NASDAQ:SBUX), Howard Schultz, chairman and ceo, made general comments about the state of consumer confidence and the retail environment. With regard to Starbucks in particular, Schultz said that
“the downturn continued in the fourth quarter, and we did see a slight improvement in the first weeks of Q1 ... which might suggest that Starbucks may have hit bottom in terms of negative transactions in our fourth quarter.
” To provide further context, the company had expected U.S. fourth-quarter comparable store sales to be relatively stable with third-quarter trends. In fact, Starbucks experienced deterioration sequentially in its fourth quarter. October comparable store sales improved slightly over fourth quarter, due primarily to a higher average value per transaction.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.
Forward-Looking Statement
This release includes a forward-looking statement about the company’s fiscal 2009 performance. This forward-looking statement is based on current management expectations and is subject to various risks and uncertainties, detailed in the company’s filings with the SEC, including the “Risk Factors” section of Starbucks Annual Report on Form 10-K for the fiscal year ended September 30, 2007, and subsequent Quarterly Reports filed on Form 10-Q. The company assumes no obligation to update the forward-looking statement.
© 2008 Starbucks Coffee Company. All rights reserved.
Starbucks Contact, Investor Relations:
JoAnn DeGrande, 206-318-7118
investorrelations@starbucks.com
or
Starbucks Contact, Media:
Tara Darrow, 206-318-7100
press@starbucks.com
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