Labour, commodity costs damper for Starbucks

Pent-up demand: A customer makes a purchase at a Starbucks outlet in Philadelphia. The company had an encouraging holiday season in the United States but weaker sales in China. — AP

NEW YORK: Starbucks had a strong holiday season in the United States, but those results were offset by higher labour and commodity costs and weaker sales in China.

In response, Starbucks lowered its earnings outlook for the 2022 fiscal year, which ends in September. The company said it expects earnings per share to decline by 4% to 6% for the year, a wider range than the 4% decline it previously forecast. It expects adjusted earnings growth of 8% to 10%, down from its previous forecast of at least 10%