Starbucks reports weaker-than-expected fiscal Q2 results as customer traffic slows

Starbucks is reporting weaker-than-expected sales in its fiscal second quarter as customer traffic dried up in many key markets. The Seattle coffee giant said on Tuesday that its same-store sales – or sales at stores open at least a year – dropped 4%. Wall Street had expected a 1% increase. In the U.S., customers spent more per visit, but that wasn’t enough to overcome a 7% decline in transactions. In China, the company’s second-largest market, same-store sales plunged 11%. Starbucks said revenue for the January-March period dropped 2% to $8.6 billion. That was also short of analysts' expectations.