Starbucks Q2 fails to dazzle as shares slip

Reuters

LOS ANGELES (Reuters) - Starbucks Corp's quarterly earnings failed to impress as Japan's earthquake and the bankruptcy of cafe partner Borders Group Inc weighed on profit.

Shares in the world's largest coffee chain slid 1.9 percent after hours despite a stronger-than-expected 7 percent jump in sales at established U.S. stores.

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Net income for the company's fiscal second quarter, ended April 3, rose to $261.6 million, or 34 cents per share, from $217.3 million, or 28 cents per share, a year earlier.

Analysts on average were looking for a profit of 34 cents for the latest quarter, according to Thomson Reuters I/B/E/S.

Starbucks forecast earnings of $1.46 to $1.48 a share in fiscal 2011, up from $1.44 to $1.47 previously but below the $1.50 analysts had expected on average.

(Reporting by Lisa Baertlein; Editing by Steve Orlofsky)

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