The company says it will close all 379 Teavana locations over the coming year. It acquired the mall-based stores in 2012. Starbucks CEO Kevin Johnson noted declining foot traffic at malls.
Starbucks also reported global sales growth of 4 percent at established locations, fueled by higher average spending per visit. But the frequency of customer visits was flat from a year ago. Sales at established location in its Asia unit rose just 1 percent.
For the quarter, Starbucks Corp. earned $691.6 million, or 47 cents per share. Excluding one-time items, it earned 55 cents per share, in line with Wall Street expectations. Total revenue was $5.66 billion, less than the $5.76 billion expected.