Starbucks sales fall, but execs say turnaround plan working

Faster coffee. More baristas. More seating.

- JULIE CRESWELL

Despite headwinds from higher coffee prices and tariffs on certain products, Starbucks is seeing progress on its turnaround strategy, CEO Brian Niccol told investors and Wall Street analysts on a quarterly earnings call Tuesday.

“We're not just building back our business,’ he said. “We're building back a better business.”

Global same-store sales for the first three months of the year fell 1% from a year earlier, an improvement from recent quarters. Global revenues rose 2.3% to $8.7 billion in the quarter, while net earnings fell 50%, to $384.2 million, from year-earlier levels.

In China, the second-largest market for Starbucks and one that has struggled in recent quarters, same-store sales were flat, a considerable improvement from a year earlier, when they were down 11%. Last fall, Mr Niccol said the company might seek a strategic partner in China, but he provided no update on Tuesday's call.