Starbucks profits halved in the third quarter as unit prices in China rose

Starbucks has announced its financial results for the fourth fiscal quarter (Q3) of 2020. The report shows that Starbucks' revenue for the third quarter was $6.203 billion, down 8.1% year-on-year; net profit was $393 million, down 51.1% year-on-year, or less than half of the same period last year. Among international regions, China stores reported a 17 percent year-over-year decline in sales (sales volume down 21 percent year-over-year, but unit prices up 5 percent year-over-year), according to the report.

Starbucks President and CEO Kevin Johnson said, "We are pleased with the faster-than-expected recovery in our two key growth markets (the U.S. and China) and are very pleased with our strong performance through fiscal 2020." Of Starbucks' $6.203 billion in revenue, $4.233 billion was reportedly generated from the Americas, down 9 percent year-over-year.

Starbucks expects the COVID-19 outbreak to cost the company $1.2 billion in lost sales.

It is understood that in the third quarter, Starbucks opened 480 new stores, 259 of which were opened in China, accounting for 54%; in the first nine months of this year, Starbucks opened 581 stores in China, and by the end of September, it had 4,706 stores in China, which shows a clear recovery of its business in China in terms of operation.