Starbucks' 4Q profit drops 97 percent

[November 11, 2008]  SEATTLE (AP) -- Starbucks says its profit dropped 97 percent in its fourth quarter mainly because of the costs of closing underperforming stores and also falling sales in the U.S.

Seattle-based Starbucks Corp. says profit fell to $5.4 million, or a penny a share, from $158.5 million, or 21 cents per share, a year earlier.

The coffee retailer says it earned 10 cents per share when the costs from closing stores in the U.S. and Australia are excluded.

Thomson Reuters says analysts expected profit of 13 cents per share and revenue of $2.58 billion.

Revenue rose 3 percent to $2.52 billion from $2.44 billion. Same-store sales dropped 8 percent in the U.S.

Starbucks expects adjusted profit between 71 cents and 90 cents per share depending on sales. Analysts see 87 cents per share.

[Associated Press]

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