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• Same-store sales in China sank 23% as several stores in the country are temporarily closed
Starbucks Corp (NASDAQ: SBUX) on Tuesday suspended its outlook for fiscal 2022 amid sharp decline in sales in China due to Covid-19 lockdowns.
Same-store sales in China sank 23% in the quarter as several stores in the country are temporarily closed. China, which is the second-largest market of the company, has been experiencing an outbreak of Covid-19 cases.
Results for the quarter were in line with Wall Street expectations due to strong demand in the US.
The coffee giant posted earnings per share of 59 cents in the second quarter, meeting Wall Street expectations.
Net sales rose 14.5% to $7.64 billion, topping expectations of $7.6 billion by analysts surveyed by Refinitiv. Same-store sales climbed 12% in the US.
Shares of the company rose 5% in extended trading.
Unionization push
Starbucks faces major unionization push from its U.S. baristas as nine of its locations have voted to unionize. More than 170 U.S. locations have filed petitions for a union election since August.
Interim CEO Howard Schultz had announced earlier that the company would suspend billions of dollars of stock buybacks and would focus on the employees and customers.
In early April, Schultz had said he would meet with employees in the coming months.
Picture Credits: Getty Images
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