Starbucks Corporation has posted lower same-store sales for the fourth quarter, primarily due to softness in the US market.

Global comparable store sales for the 13 weeks ended September 29 fell 7 per cent, while consolidated net revenues dropped 3 per cent to $9.1 billion, the company said in its preliminary financial report.

The decline was driven by a 6 per cent decline in US comparable store sales. The company said its investments in expanded product offerings and promotions did not improve customer behavior and traffic.

In China, comparable store sales were also down 14 per cent, attributed to intensified competition and a soft macro environment that impacted consumer spending.

For the full year, global comparable store sales decreased 2 per cent and consolidated net revenues increased 1 per cent to $36.2 billion.

“Despite our heightened investments, we were unable to change the trajectory of our traffic decline, resulting in pressures in both our top-line and bottom-line”, said Rachel Ruggeri, CFO of Starbucks. “We are developing a plan to turn around our business, but it will take time.”

“Our fourth quarter performance makes it clear that we need to fundamentally change our strategy so we can get back to growth and that’s exactly what we are doing with our ‘Back to Starbucks’ plan,” added chairman and CEO Brian Niccol.

The company has suspended its guidance for FY25 due to the ongoing CEO transition coupled with the current state of the business.