Page last updated at 22:07 GMT, Wednesday, 30 April 2008 23:07 UK

Starbucks reports falling profits

Starbucks cups
US consumers are making fewer visits to Starbucks stores

Starbucks has released the disappointing results that it warned investors about last week.

In the first three months of 2008 its net income fell to $108.7m (54.7m) down 28% from the same period of 2007.

Starbucks also said it would reduce the number of new stores it opens in the US this year from 1,175 to 1,020.

The coffee chain last week said it was facing the weakest US economy in its history and that meant customers were making fewer visits to its stores.

"Our financial results are clearly being impacted by reduced frequency to our US stores," said chief executive Howard Schultz.

But there was some better news as the company said that its margins were improving outside the United States.


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