Financial Times FT.com

Slowdown filters through to Starbucks

By Jonathan Birchall in New York

Published: April 24 2008 00:47 | Last updated: April 24 2008 00:47

Starbucks, the coffee house chain, on Wednesday blamed a “sharp weakening” in the consumer economy for an unexpected decline in its US sales, sending its shares plunging more than 10 per cent in after-hours trading.

Howard Schultz, who returned to the role of chief executive in January, said “the current economic environment is the weakest in our company’s history”, citing the housing slump and rising energy and food costs.

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