Starbucks and Luckin went through same-store sales decline in Q2

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Coffee chain Starbucks China and Luckin both experienced a double-digit decline in same-store sales in the June quarter of 14% and 20.9% respectively, sending a signal that consumption headwinds and intensified competition are still dampening the brands’ earnings. China contributed $733.8 million in revenue to Starbucks, down 11% from a year prior. Luckin Coffee, which has adjusted its flagship “9.9 yuan a coffee” campaign in scope since February, has seen operating margins turn up 12.5% from a negative figure last quarter. The Chinese coffee chain reported 35.5% growth to RMB 8.4 billion ($1.16 billion) in second-quarter earnings, a growth rate half the figure a year ago. [Starbucks; Luckin Coffee]Related