Move Over Pumpkin Spice, Lavender Is The New Queen Bee — Starbucks CEO Finds A Silver Lining In Disappointing Q2 Results, Drops Hints Of Future 'Texture-Based Innovations'
Portfolio Pulse from Kaustubh Bagalkote
Starbucks Corporation (NASDAQ:SBUX) found a surprising success in its new Lavender Latte, which resonated well with Gen Z and Millennial customers, providing a boost amid otherwise disappointing Q2 results. CEO Laxman Narasimhan highlighted the drink's popularity, comparing it to the iconic Pumpkin Spice Latte, and hinted at future 'texture-based innovations'. Despite a 2% year-over-year drop in revenue to $8.6 billion, a 4% decline in global comparable store sales, and a 7% decrease in overall earnings per share, the company continues to innovate, as seen with its partnerships and new flavor introductions. Starbucks' stock experienced a significant decline in after-hours trading, dropping 11.57% to $78.25.
May 02, 2024 | 12:16 pm
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Starbucks' Q2 saw a surprising boost from the Lavender Latte's success among younger consumers, despite overall disappointing financial results. The company's stock dropped significantly in after-hours trading.
The Lavender Latte's success is a positive note in Starbucks' otherwise disappointing Q2 results, indicating potential for future product successes. However, the significant stock price drop in after-hours trading reflects the market's reaction to the overall negative financial performance, suggesting a short-term negative impact on SBUX stock.
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