For its Q2 earnings, the company missed expectations across the board, posting lower than expected revenue, earnings, and same store sales growth, as customers pulled back on the frequency of their visits and size of their orders.During the earnings call, he added that macro headwinds, "particularly around the pressures that consumers face, particularly with the occasional customer ... that's where the challenge is."Revenue for the second quarter dropped 2% year over year to $8.
To attract the occasional customers, Starbucks plans to add new promotions to its app. In the US, 31% of all Q2 transactions came through its app. However, the number of 90-day active loyalty members declined to 32.8 million, compared to 34.3 million last quarter. For its international business, same-store sales are down 6%, with a 3% decline in foot traffic and ticket size. Similar to that ofBut China saw the biggest drop, with same store sales down 11%, foot traffic down 8%, and the average ticket size down 4%.
As of Q2, Starbucks expects 2024 global revenue growth of low-single digits, down from the previous range of 7% to 10%, which itself was down from a prior guidance of 10% to 12%.
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