Sales at Starbucks stores open at least a year fell 10% globally in the first three months of the year because of the coronavirus pandemic.
The decline was most pronounced in China, where the novel coronavirus first started to spread. Same-store sales fell 50% in the country during that period compared to the same one last year, the coffee chain said Tuesday. In the Americas and United States, comparable store sales fell 3% during the period. Overall, net revenue fell 5% to $6 billion during the period.
Many Starbucks locations are closed because of the coronavirus pandemic. The company has temporarily shuttered about half of its company-operated stores in the United States, and more than 75% in Canada, Japan and the United Kingdom.
But it is starting to turn the corner in China, Starbucks said. Today, 98% of locations in the country are open with limited cafe seating.
"We expect China's sales to substantially recover with comparable store sales roughly flat to prior year levels at the end of fiscal year 2020," the company said in a statement discussing the financial results. "Based on our substantial experience in China to date, we continue to believe that the impacts of the COVID-19 outbreak are temporary and that our business will fully recover over time."