Starbucks (SBUX), the world’s biggest coffee chain and a proxy for consumer spending, slashed its outlook again. In a statement yesterday, the company said profits for the quarter might lag the 87c per share results it posted in the previous period. NY Post:
Analysts surveyed by Bloomberg estimated 97 cents a share for the year. “The current economic environment is the weakest in our company’s history,” Howard Schultz, who returned as chief executive officer in January, said in the statement. Second-quarter earnings were 15 cents a share, Starbucks said. Analysts in a Bloomberg survey estimated average profit of 21 cents. Starbucks tumbled $1.96 to $15.89 in trading after the close of the Nasdaq Stock Market.
If Starbucks is beginning to see even more significant macro headwinds, then fallout cannot be far behind for other bellwether retailers that have yet to feel the pain.
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