Starbucks has posted a 2 per cent year-on-year revenue drop to $8.6 billion for the second quarter ended March 31.

Net income attributable to the company was down to $772.4 million from $908.3 million compared to the year before. Laxman Narasimhan, CEO at Starbucks, said the results do not reflect the power of the brand, its capabilities and the opportunities ahead. 

“It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us,” said Narasimhan. “We have a clear plan to execute and the entire organization is mobilized around it.”

Same-store sales declined 4 per cent, with North American and US comparable store sales down 3 per cent, and international comparable store sales down 6 per cent. 

The company opened 364 net new stores during the period, taking its number of stores to 38,951 by the end of March. 

“While it was a difficult quarter, we learned from our own underperformance and sharpened our focus with a comprehensive roadmap of well thought out actions making the path forward clear,” said Rachel Ruggeri, CFO at Starbucks. 

• Further reading, Starbucks opens first store with inclusive design framework.