Starbucks slides after a key measure of sales misses expectations

Starbucks on Thursday reported first-quarter earnings that showed profits in line with expectations but a miss on sales at stores open for at least one year.

Comparable-store sales rose 3%, below analysts' forecast for 3.6%, according to Bloomberg. The coffee retailer reported adjusted earnings per share of $0.45.

Starbucks shares fell by as much as 3% in extended trading after the results.

In the Americas, Starbucks' operating margins - how much of each dollar of revenues is retained after the costs of sales and operating expenses are accounted for - shrunk by 130 basis points. This was partly due to higher wage costs, Starbucks said.

Starbucks said it would no longer provide forward-looking targets in its earnings releases but will continue to provide a business outlook during earnings calls.

More to come ...