Starbucks sees bigger hit from foreign exchange this year

Starbucks Corp on Thursday said foreign exchange will take a bigger bite out of revenue and earnings this year than it had forecast. 

PHOTO: AFP

24 Apr6:52 AM

[LOS ANGELES] Starbucks Corp on Thursday said foreign exchange will take a bigger bite out of revenue and earnings this year than it had forecast.

The world's biggest coffee chain now expects a full-year foreign exchange hit of 2 percentage points on both earnings and revenue. Previously, Starbucks had expected foreign exchange to reduce earnings and revenue by 1 percentage point, Chief Financial Officer Scott Maw told Reuters.

Strength across Starbucks' businesses is offsetting that drag, Mr Maw said.

As a result, the company on Thursday stood by its fiscal 2015 revenue growth forecast of 16 per cent to 18 per cent and its call for full-year earnings, excluding items, of US$1.55 to US$1.57 per share.

REUTERS