Analyst Sharon Zackfia said in a note to investors that "we are increasingly optimistic that the worst of Starbucks' sales trends are now in the past, given a broad improvement in the tenor of consumer spending thus far in 2009." Another analyst, Marc Greenberg, told his clients that Starbucks' cost cuts were a positive step forward, and that "we credit management with better financial discipline." || Read "Starbucks shares rise on 2Q sales improvement"
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April 30, 2009
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I think better fimancial discipline begins in each store.
Posted by: BOSTON STARBUCKS REBEL | April 30, 2009 at 12:31 PM
I think Starbucks won a temporary victory in the expectations game. Nothing more. It's true that the SBUX comp store sales of -8% v. Q2FY08 was slightly better than the -9% reported for the previous quarter v. Q1FY08. What isn't mentioned, however, is that:
(1) Q2FY08 was particularly anemic, and thus a lower target to comp against, and
(2) Comps at the stores that remained after store closures should have been higher just because of migration of customers that had previously gone to the stores that were closed.
In light of these other factors, I think an 8% decline in same store sales is actually an indication of continuing decay in the business.
Posted by: SBUX Alum Bill | April 30, 2009 at 12:50 PM