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Starbucks Corporation (NASDAQ:SBUX) is lowering its earnings outlook and year long outlook due to ‘lower home values, and rising costs for energy, food and other products that are directly impacting [Starbucks] customers’

Howard Shultz, CEO of Starbucks Corporation, cited “…we are rigorously managing our expenses and seeking additional opportunities to reduce costs. To this end, we are committed to making the necessary fundamental changes, both structurally and operationally, to optimize our resources, while also investing prudently in the business to strengthen and position Starbucks for the long term.”

The outlook for fiscal 2008 is lower due to decreasing traffic over the past year and ‘The current economic environment is the weakest in our company’s history’. On Wednesday, April 30, 2008 Starbucks will announce key financial metrics for the next three years and Howard Shultz says ‘we are aggressively implementing a series of customer-focused initiatives. These are in the early stages of their execution and the benefits are therefore not yet reflected in our financial results.’

Starbucks share price has dropped 11% in after hours.

Tags: Earnings·Long·Starbucks·Term