In the USA, sales rose 5 percent at established stores, also driven mostly by higher spending versus an increase in customer visits. By next summer, Starbucks will have moved on from trying to operate both businesses as retail operations.
Locally, there are Teavana stores in the Mall of Louisiana in Baton Rouge and in Lakeside Shopping Center in Metairie. "We conducted a strategic review of the Teavana mall-based store business and concluded that despite our efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue". Reports indicate that stores in the country grew 6-7 percent year-over-year, compared to only 3% in the U.S. Additionally, the company said that it will also be taking 100% ownership of 410 locations in Taiwan. "Starbucks' growth potential in China is unparalleled", said Johnson. At the time, Starbucks was trying to seize on what it viewed to be an emerging tea market. Mr. Johnson spoke to the many pluses of the tea business during the July 27 conference call.
Blazers trade Allen Crabbe to Nets
Crabbe shot 44 percent from 3 last season on almost four attempts per game, but failed to do much of anything else. At the very least, he'll round out the Nets' eclectic guard rotation alongside Jeremy Lin and D'Angelo Russell.
Twitter users referenced the high price of Teavana products and the fact that not as many in the US drink tea. The coffee chain will continue to offer a wide variety of hot tea options at most locations, as well as iced green, black and other flavored, blended tea beverages, such as Shaken Berry Sangria tea or the new Shaken Iced Pina Colada Tea Infusion, a "creamy and tropical beverage crafted with Teavana black tea, pineapple fruit and botanical blend, and coconut milk".
The closures will happen in phases, with 379 stores shuttering through the end of the year, and the rest being phased out by spring 2018. Additional charges are expected to be incurred over the next few quarters.
For the quarter, Starbucks Corp. earned $691.6 million, or 47 cents per share. Revenues increased 8% to $5,661.5 million from $5,238 million.