Starbucks (SBUX, Financial) reported a smaller-than-expected decline in its quarterly sales, indicating a reduction in customer loss that had previously troubled the coffee chain. The company announced that for the fiscal quarter ending December 29, same-store sales decreased by 4%, an improvement from the 7% drop in the previous quarter. Analysts surveyed by Bloomberg had anticipated a 5.3% decline.
Following the earnings release, Starbucks' stock rose 3.2% in after-hours trading. The stock has increased by 10% this month up to Tuesday's close. CEO Brian Niccol has been working on revitalizing the company after previous challenges with customer resistance, price increases, and slow service led to significant performance declines.
Niccol expressed confidence in the company's progress, noting that while there is room for improvement, they are moving forward as planned. The earnings report shows that Starbucks is making headway, with earnings per share slightly surpassing average expectations. In its largest market, North America, the sales decline met expectations.
