Page last updated at 21:47 GMT, Wednesday, 29 April 2009 22:47 UK

Starbucks profits decline by 77%

Starbucks branch
Starbucks says it aims to build a more sustainable business

Starbucks has reported a 77% fall in quarterly profits after closing 123 US stores as part of a cost-cutting plan.

The US coffee giant reported a net profit of $25m (£17m) for the 13 weeks to 29 March, compared with $108.7m for the same period a year earlier.

Starbucks had previously announced plans to close about 960 stores globally, amid consumers cutting back spending during the recession.

Since July it has shut 507 stores in the US and 64 shops in other countries.

Total revenue fell 7.6% to $2.3bn, Starbucks said.

"We are encouraged by the progress we have made to date on our cost-saving initiatives," Executive Vice-President Troy Alstead said.

"We are building a healthier and more sustainable business model to support the company into the future and deliver value to our shareholders."

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