Starbucks Corp. plans to shut down all its Teavana stores as it seeks to improve its financial performance.
The company said Thursday it will close all 379 Teavana locations in the coming year. There are at least 17 in the greater Los Angeles area.
Starbucks acquired the mall-based chain in late 2012, and said this past April that it was reviewing options for it. Starbucks Chief Executive Kevin Johnson noted declining foot traffic at malls.
“We felt it was an appropriate time to take the decision and begin shutting down those stores,” he says.
Starbucks also reported companywide quarterly financial results Thursday.
The Seattle-based coffee giant posted global sales growth of 4% at established locations for the quarter that ended July 2, fueled by higher average spending per visit. But the frequency of customer visits was flat compared with a year earlier.
Sales at established locations in its Asia unit rose just 1% during the three-month period. Earlier in the day, Starbucks announced plans to acquire the remaining 50% stake of its East China joint venture that it does not already own, making it the operator of all Starbucks stores in mainland China.
It said it will sell its 50% stake in its Taiwan joint venture so the stores there are run by local operators.
For the quarter, Starbucks earned $691.6 million, or 47 cents a share. Excluding one-time items, it earned 55 cents a share, in line with Wall Street expectations. Total revenue was $5.66 billion, less than the $5.76 billion expected.
Starbucks shares ticked up 5 cents to $59.55 in extended trading.