Net sales rose 7% from the prior year to $5.2 billion, falling shy of Wall Street estimates for $5.34 billion.
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Chief Operating Officer Kevin Johnson said the new rewards program was successful, with growth in active members.
The Seattle-based company said it had net income of 51 cents per share. He said the sense of community Starbucks has created should help the company.
Starbucks Corp.’s revenue fell short in the third quarter even as its earnings were in line with expectations. Sales at all stores open at least a year increased 4%. Starbucks shares already had lost 4 percent this year through Thursday’s close, while the Standard & Poor’s 500 Index has increased 5.9 percent.
NEW YORK (AP) Starbucks has trimmed its sales forecast after revenue came in lighter than expected in the most recent quarter. The company reiterated its full-year earnings forecast of $1.88 to $1.89 a share, excluding one-time items. As we enter Q4 and approach fiscal 2017, we have clear line of sight to returning our USA business to historic levels of comp sales growth which had been at or above 5% for the 25 consecutive quarters prior to Q3.
While customers responded well to the loyalty program switch, “we had two major marketing messages” at the same time, he said.
“We are confident in the correctness of the strategic, operational and digital moves we outlined today and remain steadfast in our commitment to deliver significant, profitable growth over the long term”, Maw said in a statement.
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Starbucks’s share price fell 3% to $55.84 during after-hours market action, paring an earlier loss that had the stock price dropping more than 5%. Starbucks has a 52-week range of $42.05 to $64.00 and it has a consensus analyst price target of $67.92.
