Starbucks has reported attributable net earnings of $772.4m for the second quarter (Q2) of the fiscal year 2024 (FY 2024), a decline of 15% compared to $908.3m a year previously.

For the quarter ended 31 March 2024, the company’s total revenues were $8.56bn, down 1.8% compared to $8.72bn in Q2 FY 2023.

The coffee chain’s global comparable store sales declined 4%, driven by a 6% decline in comparable transactions which was partially offset by a 2% increase in the value of its average customer transaction.

In North America and the US, comparable store sales declined 3%, driven by a 7% decline in comparable transactions, partially offset by a 4% increase in the average purchase.

The brand’s international comparable store sales also dipped by 6%, driven by a 3% decline in both comparable transactions and average purchases.

Starbucks’ operating income in Q2 2024 fell 17.2% to $1.1bn from $1.32bn in the same period of the previous year.

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The company attributed the decline to deleveraging, incremental investments in store partner wages and benefits, and increased promotional activity.

The company opened 364 net new stores during the quarter, ending the period with 38,951 stores, 52% company-operated and 48% licensed.

Starbucks CEO Laxman Narasimhan stated: “In a highly challenged environment, this quarter’s results do not reflect the power of our brand, our capabilities or the opportunities ahead.

“It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us. We have a clear plan to execute and the entire organisation is mobilised around it.

“We are very confident long-term and know that our Triple Shot Reinvention with Two Pumps strategy will deliver on the limitless potential of this brand.”