Starbucks Same-Store Sales Fall 10% In Second Quarter Due To Temporary Store Closings

Starbucks (SBUX) on Tuesday reported that same-store sales fell 10% in the fiscal second quarter, with the coffee chain temporarily closing locations in major markets such as the U.S. and China due to the coronavirus. The company also reported 32 cents adjusted earnings per share and $6 billion in revenue.

Analysts surveyed by Refinitv expected 34 cents adjusted earnings per share on revenue of $5.89 billion.

Shares of Starbucks closed at $78.69 but fell more than 1% in after-hours trading.

In late January, Starbucks closed half of the company’s almost 4,300 outlets in China, as the country was the epicenter of the coronavirus outbreak. By the end of February, the coffee chain had reopened most of its stores in the country.

Starbucks CEO Kevin Johnson was optimistic about the company’s future in China, despite the setback from the coronavirus. Starbucks opened its first store in China in 1999.

“Since the beginning of this global crisis, Starbucks has made decisions that prioritize the well-being of our partners and customers, support health and government officials, and responsibly serve our communities,” Johnson said in a statement. “This principled approach is showing steady business improvement in China, where today, substantially all existing Starbucks stores have reopened with modified operations, new store locations are being added and customer engagement continues to grow with each passing week.”

Starbucks is also making plans to reopen cafes in the U.S., with Johnson reportedly shooting for normal business operations in June. In March, the company announced that all Starbucks locations without drive-thrus in the U.S. and Canada would be closed because of the coronavirus outbreak.