October 28, 2020

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Starbucks quarterly revenue down 3 billion U.S. dollars due to Corona crisis | Right away

Starbucks quarterly revenue down 3 billion U.S. dollars due to Corona crisis | Right away

Starbucks reported revenue of 3.1 billion U.S. dollars (about 2.6 billion euros) in the quarter, down from expected, due to the Corona crisis. That’s according to tuesday night’s quarterly update for the U.S. coffee chain.

The lower sales are due to the temporary closure of the stores, the adjusted opening hours of the reopened stores and a decline in the number of customers in the stores, According to Starbucks.

Starbucks has calculated its loss of revenue due to the Corona crisis based on expected sales for the third quarter of 2020. It was estimated that it was more than 3 billion dollars higher before the Corona crisis began.

Quarterly sales were also lower than in the same period of the previous year. Starbucks generated sales of US 4.2 billion US dollars in the third quarter of 2020, 38 percent more than in 2019.

As a result, the company slipped into the red, with the company making a loss of more than US 678 million US dollars in the third quarter. In the same period last year, the company made a profit of USD 1.4 billion, according to the quarterly update.

Topman sees steady recovery

Kevin Johnson, chief executive of the coffee chain, points out that most Starbucks stores have reopened and says things are “constantly recovering.”

The company has previously said it is taking steps to adapt to the “new reality” of the coronavirus, as Chief Executive Kevin Johnson has previously described the situation. The CEO announced in early June that the coffee chain will open drive-tru and pick-up locations in the coming days.

For the coming quarter, the company also expects the impact of the Corona crisis in the quarterly figures.