In 2021, Starbucks' latest earnings report revenue of $6.7 billion fell short of expectations, and the chief operating officer announced his resignation.

On January 27th, Starbucks released its latest fiscal year figures for 2021.

Starbucks reported net revenue of $6.75 billion in the first quarter of fiscal 2021, below market expectations of $6.92 billion.

In the first quarter, earnings per share were $0.53, compared with market expectations of $0.51, compared with $0.74 in the same period last year. Same-store sales fell 5% in the first quarter, and the market is expected to decline 4.2%.

At the same time, in the company's latest results, Starbucks' two largest markets, China and the United States, showed different trends in the results. Starbucks' same-store sales in the United States fell 5% this quarter. As Starbucks's second largest market, the Chinese market has grown by 5%, which is understood to be the first positive growth since the epidemic.

With regard to the poor financial performance of the decline in same-store sales in the United States, Starbucks said that the 5% decline in same-store sales in the United States in the first fiscal quarter was due to the serious influence of COVID-19. As we all know, Starbucks sells experience. Under the tremendous impact of the COVID-19 epidemic, Starbucks' third space and dining services have been restricted. in addition, Starbucks also reported in the financial report that the performance of the Chinese market has improved. This is mainly due to the popularity of incentive programs and the return of consumers. Starbucks entered China in 1998 and opened its first mainland store in Beijing, the second largest market in the world for Starbucks in the United States.

Notably, Roz Brewer, chief operating officer (COO) of Starbucks, announced that he would leave next month to become chief executive of WALGREENS BOOTS ALLIANCE after Starbucks reported results that fell short of market expectations.

According to public data, WALGREENS BOOTS ALLIANCE Wobo Union, which began in the United Kingdom in 1849 and is headquartered in the United States, is one of the world's top 500 enterprises, a well-known retailer of medicine and daily health products, and an earlier world health care company dominated by pharmacies.

Looking back at the 2020 fiscal year, Starbucks' full-year net profit was $923 million, down 74.2% from a year earlier. In July last year, Starbucks planned to permanently close 400 stores in North America, while it opened 259 stores in China in the fourth quarter, a record for the total number of stores opened in China in the fourth quarter. Starbucks opened 278 new stores in the first quarter of this year, compared with 539 in the same period last year. As of December 27, 2020, Starbucks had a total of 32938 stores, of which 4863 were in China.

At present, in addition to speeding up the number of stores opened, Starbucks is also undergoing a digital transformation.

Starbucks and Box Horse jointly launched a takeout service in China on October 18, 2018. Starbucks delivery Starchef, jointly created by Starbucks and Box Ma Xiansheng, focuses on online orders with amazing efficiency, and then this "takeaway Starchef" service model is also quoted abroad. in addition, Starbucks also worked with Alibaba to create a new Starbucks online retail wisdom store. On May 21, 2019, Starbucks launched "online spot" in China. In February 2020, Starbucks improved its previous "dedicated star delivery" delivery service and "Kaikai" mobile ordering service to launch a "contactless Starbucks experience" to encourage customers to order online.

For the second quarter of this year, Starbucks has high hopes for the Chinese market. Starbucks expects the recovery in China to be more pronounced, with U.S. same-store sales growing by 5% to 10% and same-store sales in China nearly doubling. The company expects second-quarter earnings per share of 36 cents to 41 cents, adjusted earnings per share of 45 cents to 50 cents.

* Image source: Internet