Starbucks Points To Weaker Consumer As Profit Falls

Starbucks reported weaker than expected profits, pointing to lackluster conditions in China and consumer caution in the United States (Credit: AFP)

Starbucks reported lower profits on falling sales on Tuesday as the coffee giant pointed to weakening consumer sentiment and lackluster conditions in China as factors behind an earnings miss.

The performance "did not meet our expectations," said Chief Executive Laxman Narasimhan, who also noted a wave of severe weather in the United States as a driver of the tepid results.