Pinnacle Activity Ticker
Signs of a slowing economy
I read the
following e-mail below and felt that although this article may appear at first
glance to have little significance, in actual fact it does. The article reflects
that people are watching their spending which can have a negative affect on
corporate earnings. In this case Starbucks has become a victim of the recent
posts first quarterly loss ever
Wednesday, July 30, 2008
LOS ANGELES — — Starbucks Corp. Wednesday posted its first quarterly net loss
since it went public in 1992, as it booked charges related to closing stores and
turning around its business.
The coffee chain, which has slashed U.S. growth plans and is closing 600
stores in the United States and 61 in Australia, reported a fiscal third-quarter
net loss of $6.7-million (U.S.), or 1 cent per share, compared with a
year-earlier net profit of $158.3-million, or 21 cents per share.
Results from the most recent quarter included 17 cents in charges primarily
related to store closures and restructuring.