FALCON POWERS – Coffee giant Starbucks has announced losses due to declining profits and revenues driven by a decrease in store sales as a result of boycott campaigns. This has led to a sharp drop in the company’s stock price by approximately 16%.
The decline in the company’s sales in recent months is a result of boycott campaigns targeting its products due to its support for Israel’s war on the Gaza Strip. These campaigns have also prompted the company to lower its profit and revenue expectations for the fiscal year 2024, anticipating continued weak performance in its cafes in the near future.
Starbucks CEO, Kevin Johnson, stated, “In a challenging environment, this quarter’s results do not reflect the strength of our brand, our capabilities, or the potential ahead.”
Store sales themselves have decreased by 4%, whereas experts had anticipated a 1% growth in store sales.
In the United States, store sales have dropped by 3% along with a 7% decrease in foot traffic. This represents the second consecutive quarter in which the company has struggled in the local market. In the previous quarter, executives attributed the slowdown in sales to the boycott targeting the company due to its stance on Israel.
