Starbucks says it lost $ 3.1 billion in sales due to COVID-19, pivots to more trucks on the sidewalk

Starbucks reported the third quarter fiscal results. This update also corrects FactSet’s expectations for the company.

Shares of Starbucks Corp. SBUX,
It was up 5% in the extended session on Tuesday after the retailer reported a lower loss and better-than-expected sales in its fiscal third quarter. The company estimated that it lost more than $ 3 billion in sales due to the pandemic’s reduction in store traffic and other impacts, and plans to offer sidewalk pickups at more of its stores. Starbucks said it lost $ 678.4 million, or 58 cents a share, in the quarter, compared with earnings of $ 1.37 billion, or $ 1.12 a share, in the same period last year. He estimated that the impact of COVID-19 reduced approximately $ 1.20 per share from its results, he said. Adjusted for one-off items, Starbucks lost 46 cents a share, in contrast to an adjusted gain of 78 cents a year ago. Revenue fell 38% to $ 4.2 billion, the company said. Analysts surveyed by FactSet expected an adjusted loss of 59 cents per share on sales of $ 4.1 billion. Sales at the same store fell 40%, Starbucks said. Due to the pandemic, Starbucks estimated that it lost about $ 3.1 billion in sales relative to its expectations for the quarter. That included the effects of temporary store closings, modified operations, reduced hours and reduced customer traffic, he said. The company’s board of directors declared a cash dividend of 41 cents per share, payable on August 21 to shareholders of record beginning on August 7. Starbucks said it plans to launch a curbside pickup at several hundred existing locations in the near future and add more than 50 pickups from Starbucks locations in the next 12 to 18 months to meet “the changing customer preferences that have accelerated. due to COVID-19 “. The shares ended the regular trading session down 2.4%.