Starbucks Corp. said Wednesday that its fiscal second-quarter profit dropped 77% because of big restructuring charges related mainly to the closure of 123 U.S. cafes.
Seattle-based Starbucks said that, for the quarter ended March 29, its net income fell to $25 million, or 3 cents a share, from $108.7 million, or 15 cents a share a year earlier.
Excluding the charges, Starbucks earned 16 cents a share. Analysts polled by Thomson Reuters expected profit of 15 cents a share.
The 123 store closures during the quarter are part of a plan to shut underperforming stores and shave costs companywide. Since January 2008, the chain has announced a total of more than 900 store closures and said it planned to cut as many as 6,700 jobs.
In all, 507 U.S. stores and 64 international stores have been closed so far.
The gourmet coffee retailer said quarterly revenue fell 8% to $2.33 billion. Analysts predicted revenue of $2.36 billion.
Starbucks shares fell 19 cents to $13.50 in after-hours trading after the earnings news. During regular trading Wednesday, shares rose 19 cents to close at $13.69.