Starbucks shares were trading lower after the coffee giant lowered its outlook.
NEW YORK (CNNMoney) -- Starbucks shares were sharply lower Friday after the coffee merchant lowered its outlook and reported earnings that fell short of Wall Street's expectations.
The Seattle-based mega-chain said Thursday that it earned 43 cents per share for the quarter ended July 1, a number that fell two cents short of forecasts.
Revenue rose 13% to $3.3 billion, yet failed to match predictions.
The disappointing results, coupled with a warning from the firm's management about the current quarter, sent shares down by more than 10% after the opening bell Friday.
Starbucks (Fortune 500) now expects to earn 44 to 45 cents per share in the fourth quarter, and $2.04 to $2.14 per share for the full year, with global economic conditions attributing to the lower expectations.,
"We're dealing with significant global economic and consumer challenges," CEO Howard Schultz said during a conference call with analysts.
Starbucks isn't the only company to cite international headwinds as a reason for disappointing earnings. Ford (Fortune 500), DuPont ( , Fortune 500) and UPS ( , Fortune 500) have all raised similar concerns in recent days.,
Starbucks indicated Thursday it may scale back operations in Europe.
"We are currently conducting a more thorough portfolio review ... [and may] potentially close more stores in Europe over the next few quarters, beginning in the fourth quarter," CFO Troy Alstead said.
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