Fewer U.S. customers and venti-sized costs for closing poorly performing stores led to lower sales and profit in the fourth quarter at Starbucks, the company said Monday.
Seattle-based Starbucks said profit fell 97 percent to $5.4 million, or a penny a share, from $158.5 million, or 21 cents per share, a year earlier. The coffee retailer earned 10 cents per share when the costs from closing about 600 stores in the U.S. and 61 locations in Australia are excluded.
Analysts expected profit of 13 cents per share, according to a poll by Thomson Reuters.
Shares of Starbucks declined more than 3 percent in extended trading after finishing the regular session at $10.20.
Starbucks began shutting the U.S. and Australian stores this summer as part of a campaign to reverse slowing sales and falling profits at the company. That turnaround began at the start of the year when former Chief Executive Howard Schultz took back the reins of the company to again fill the CEO and chairman posts.
Besides closing the stores, Starbucks has cut more than 1,000 positions—many of which were unfilled—and introduced a slew of new products, including Vivanno smoothie drinks and breakfast pastries.