Starbucks (NASDAQ:SBUX) expects to swing to a loss in its fiscal third quarter as the company predicts it lost as much as $3.2 billion in revenue due to the coronavirus pandemic.
The Seattle-based retail coffee chain is forecasting adjusted losses per share of 55 cents to 70 cents during for quarter ended June 28. But it expects that its fiscal fourth-quarter earnings will improve, predicting adjusted earnings per share of 15 cents to 40 cents.
For the full fiscal year, the company expects same-store sales in the U.S. and China to decline 10% to 20%.
U.S. same-store sales fell 43% in May as the company reopened locations with modified hours and operations. By the end of the month, 91% of U.S. stores had been reopened. In the last week of May, same-store sales tumbled just 32%.
About 95% of U.S. locations are open again, with the majority of closed locations located in the New York City area.
In China, same-store sales fell 21% in May, an improvement of April’s same-store sales declines of 32%. In the last week of May, same-store sales were down just 14% compared to the year-ago period. About 90% of Chinese cafes are back to their pre-pandemic operating hours, and 70% have full seating available.
In April and May, Starbucks opened 57 net new stores in China.
SBUX shares retreated $3.17, or 3.8%, to $79.20.
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