Postcards

Starbucks' Schultz needs to get real

Starbucks CEO Howard Schultz needs less optimism and a stronger dose of reality in his brew.

Monday's fourth-quarter earnings report -- net income down 97% to $5.4 million on revenues of $2.5 billion, which were up 3% -- missed expectations. Same-store sales, down 8% in the United States and 7% globally, were worse than Wall Street predicted. Moreover, $170 million in restructuring costs to close 600 U.S. stores, as detailed by management MORE

Power Point: Go on the fly

"In this environment, it's very imporant to be decisive, but you're not going to have all the information. You have to have the courage to go to market without all the information—to go on the fly."

-- Starbucks (SBUX) chairman and CEO Howard Schultz, at the end of today's earnings call with analysts. After the market closed, Starbucks reported disappointing fourth-quarter results: net income down 97% to $5.4 million on revenues MORE

Starbucks' Schultz on his execution challenge

I waited 45 minutes to vote this morning. A breeze, I guess, compared to those people standing in line for hours. At 8 a.m., I walked into my Starbucks on Manhattan's Upper West Side for a free tall brewed coffee -- the retailer's Election Day promotion -- and walked straight to the counter. No line. The store filled 20 minutes later. Obviously, Americans are running about one hour late today. MORE

Starbucks gets a boost from Costco

Have you noticed that Starbucks' (SBUX) stock has popped up from its seven-year low? Last Monday the shares were trading below $10. Then they got a boost last Wednesday when CEO Howard Schultz noted that he saw a slight upturn in store traffic in October. The stock has outperformed the broader market rally and is now trading just below $13.

Another reason for the nascent recovery: A Starbucks promotion at Costco MORE

Power point: Protect your brand equity

"How do you navigate through this? The key is to not make the short-term decision that would subordinate the equity of the brand."

- Starbucks (SBUX) CEO Howard Schultz yesterday, when I chatted with him in New Orleans. Here with 11,000 Starbucks managers--or "partners" as he calls his employees--he was preaching the dangers of discounting and the value of social responsibility, especially when employees as well as consumers are feeling down MORE

Starbucks' Schultz: from cocky to vulnerable

Seeing Starbucks (SBUX), once America's model retailer, post its first-ever quarterly loss, you realize how dire the retail category is these days. Just about everybody except the low-price players like McDonald's (MCD), Wal-Mart (WMT) and TJX (TJX) are losing.

But beyond being a victim of the harsh economy, Starbucks made real mistakes. It dramatically over-expanded. And when Howard Schultz, who built the company from a tiny Seattle chain, fired CEO Jim MORE

Why Starbucks is hitting the wall

The news that Starbucks (SBUX) will close 600 stores and lay off as many as 12,000 employees is not only the news that Wall Street was waiting for. It is inevitable. One thing I've learned from my 24 years following retailers for Fortune is this: Every retailer that expands across the U.S. hits the wall on growth eventually. And every retail entrepreneur, no matter how talented, is eventually exposed as MORE

Power Point: Act like you own it

"Act like you own it. The difference between founders and corporate executives is engagement. Founders are engaged in the business—emotionally connected to that brand or that product in a way that you don't see anywhere else."

-- Former Starbucks CEO Jim Donald, who has worked for founders Sam Walton at Wal-Mart (WMT) and Joe Albertson at Albertsons supermarkets. Howard Schultz, who built Starbucks (SBUX) from a tiny chain, replaced Donald as MORE