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Starbucks loses money as it cuts jobs, closes stores

Post by News Tribune Staff on July 30, 2008 at 3:47 pm with No Comments »
July 30, 2008 3:47 pm

The Associated Press reported today that Starbucks posted a loss for its third quarter and also lowered its outlook for the year and said it would open fewer new locations.

Here’s more from the AP story: But the company kept its profit guidance intact for fiscal 2009, easing investors’ fears about the economy’s effect on the year ahead.

“I don’t think anyone’s really focused on the quarter,” said Edward Jones analyst Jack Russo. “Everyone is thinking of next year.”

The company reported a loss of $6.7 million, or 1 cent per share, compared to a profit of $158.3 million, or 21 cents per share, a year earlier. Starbucks said it earned 16 cents per share once the costs for restructuring and closing stores are excluded.

Analysts polled by Thomson Financial expected a profit of 18 cents per share on revenue of $2.61 billion.

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