Starbucks Revises Forecast for 2001

Starbucks Corp. reported profit growth for its fiscal fourth quarter that met Wall Street estimates, but the company lowered its annual sales and profit forecasts because of the slowing economy.

Starbucks now expects earnings of 54 cents to 55 cents a share next year, with sales growth of 20%, compared with its earlier forecast of 56 cents to 58 cents on a 25% increase in sales. Analysts on average were expecting 55 cents, according to Thomson Financial/First Call.

For the quarter ended Sept. 30, Starbucks said operating profit grew 22% to $53.2 million, or 14 cents a share, matching forecasts, as sales surged 18% to $689.5 million.

Sales at stores open at least a year rose 2%, compared with a 10% increase a year ago.

Shares of Starbucks closed up 5 cents at $19.17 on Nasdaq, before the results were released.