Starbucks says it lost $ 3.1 billion in revenue as a result of COVID-19, which revolves around more curbs
Shares of Starbucks Corp. SBUX,
increased 2% in the extended session Tuesday after the retailer reported sales that missed Wall Street views and a larger than expected adjusted loss for the second quarter. The company estimated that it lost more than $ 3 billion in revenue due to the shrinkage of retail traffic and other effects from the pandemic, saying it is all about more curbs and mobile orders to stay ahead. Starbucks said it lost $ 678.1 million or 58 cents per share in the quarter, versus a profit of $ 1.37 billion, or $ 1.12 per share, in the prior year period. It estimated that the impact of COVID-19 would shave about $ 1.20 per share from the results, it said. Adjusted for one-off items, Starbucks lost 46 cents per share, compared to an adjusted profit of 78 cents a year ago. Sales were down 38% to $ 4.2 billion, the company said. Sales in the same store decreased by 40%. Due to the pandemic, Starbucks estimated that it lost approximately $ 3.1 billion in sales compared to its expectations for the quarter. That included the effects of temporary store closings, changed operations, fewer hours and less customer traffic, it said. The company’s board declared a cash dividend of 41 cents per share, payable on August 21 to shareholders registered on August 7. Starbucks said it plans to include curbs at several hundred existing locations in the near future and add more than 50 Starbucks pickups. locations in the next 12 to 18 months to meet “changing customer preferences that have accelerated due to COVID-19.” The shares ended the regular trading session by 2.4%.