Starbucks Q2 fails to dazzle as shares slip

LOS ANGELES (Reuters) - Starbucks Corp's <SBUX.O> quarterly earnings failed to impress as Japan's earthquake and the bankruptcy of cafe partner Borders Group Inc <BGPIQ.PK> 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.

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)