SEATTLE _ Starbucks' sales growth, which had been on a tear last year but started showing signs of slowing last quarter, slid even more last quarter.
Sales at stores open at least a year grew 4 percent globally in the quarter ended June 26. That compares with 7 percent growth in the same quarter a year ago, and 6 percent in the previous quarter.
Particularly worrisome was the 4 percent growth in the Americas, Starbucks' largest segment. Last year, comparable sales in the Americas was up 8 percent. Last quarter, it was 7 percent.
The growth slowdown globally was due mainly to the U.S., where the launch of its revamped rewards program in April meant the company delayed by a week its summer Frappuccino happy hour program, said Kevin Johnson, Starbucks' chief operating officer.
U.S. comparable sales was "a bit slower than we expected," he said, attributing it to the company having two marketing messages out at the same time _ one about the revamped rewards program and the other about the Frappuccino summer campaign.
"We didn't get as much traction on social media," he said, nor as many Frappuccino purchases as in the past.
Though comparable sales in China, where Starbucks is expanding rapidly, rose 7 percent for the quarter, in the China Asia Pacific segment growth was 3 percent, down from 11 percent a year ago and level with last quarter.
"We have a clear line of sight to returning our U.S. business to historic levels of comp sales growth which had been at or above 5 percent for the 25 consecutive quarters prior to Q3," Starbucks chairman and CEO Howard Schultz said in a news release.
Despite the slowdown in sales growth, overall sales brought in record third quarter revenue of $5.24 billion, slightly below the $5.35 billion consensus estimate from Zack's.
Profit was $754.1 million. Earnings per share of 51 cents beat the Zack's consensus estimate of 49 cents, and was up from 42 cents a year ago.
Starbucks shares were down 4 percent, to $55.25, in after-hours trading after the release of the earnings report.
