By (Reuters) -Starbucks Corp said on Tuesday it was suspending its annual forecasts as new CEO Brian Niccol looks to turn around the coffee giant struggling to stem easing customer demand.
Shares of the company were down about 6% in after-hours trading as coffee chain also expects to report a decline in quarterly sales and profit.
Niccol took over from Laxman Narasimhan on Sept. 9 at a time when the coffee chain struggled with tackling weakness in two top markets, the U.S. and China.
“Despite our heightened investments, we were unable to change the trajectory of our traffic decline, resulting in pressures in both our top-line and bottom-line,” Chief Financial Officer Rachel Ruggeri said.
“We are developing a plan to turn around our business, but it will take time.”