Starbucks blames social unrest for missing third consecutive sales target
Executives refer to the result as an "anomaly" after terror concerns and political uncertainty
Updated : 12:10
Starbucks Corp. posted disappointing results in Europe and the US with a third successive sales target miss, citing global concerns regarding civil unrest as a major factor.
The company's shares have tumbled 4% this year, slipping 3% to $56.07 in afterhours trading on Thursday.
Executives were quick to dismiss the results from the quarter, referring to them as an "anomaly", with Chief Executive Howard Schultz flabbergasted.
"In Starbucks's 24 years of public life, I can't recall a quarter quite like this," said the company's boss.
The coffehouse chain had previously projected sales to rise by well above 10%, but is now predicting just about 10%.
The company recently announced plans to better working conditions for its employees, which will come into effect in October, but it will not affect the profit outlook.
"There's no wavering in our commitment to deliver at least 15% EPS growth every year," CEO Scott Maw said, adding, "that is true for 2017."
Domestic sales, in which Starbucks does the majority of its trade, rose 8% while similar sales rose 4% in the previous quarter. In the year-ago period, the company reported 13% and 8% increases, respectively.