For the first time since the company went public in 1992, Starbucks has announced a quarterly net loss.
Last year at this time, Starbucks announced a quarterly profit of $158.3 million, but now it’s a $6.7 million quarterly loss. Oh how the mighty have fallen in these dark recession days.
Is there any non-essential luxury item consistently being purchased in this era? Now that porn is out, maybe cigarettes?
In spite of this news, Starbucks shares traded 5% hirer today because many investors are happy that many store locations are closing. Even their own investors think they have too many stores. So we’re all in agreement now – that Starbucks across the street from another Starbucks plan was a bad idea, right?
Reuters: Starbucks posts loss, shares up on U.S. store cuts, July 30, 2008