Starbucks Goes Decaf on Earnings Outlook

Stumbling US economy will water down quarterly profits, '08 forecast
By Will McCahill,  Newser Staff
Posted Apr 23, 2008 7:05 PM CDT
Starbucks also said its yearly earnings would be lower than expected.   (AP Photo)
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(Newser) – The slumping US economy means Starbucks' quarterly profits won't meet estimates when figures are released April 30, the coffee giant said today. Analysts expected earnings of 21 cents per share for the quarter ended March 30; Starbucks expects 15 cents, the Wall Street Journal reports. It now predicts yearly sales to be lower than last year's 87 cents per share; Starbucks' January forecast had called for 96-98 cents.

"The current economic environment is the weakest in our company's history, marked by lower home values, and rising costs for energy, food, and other products that are directly impacting our customers," said CEO Howard Schultz.