• Reuters , Friday, December 5, 2008 10:46 AM

Starbucks executives, speaking at an analyst day in New York yesterday, warned that its results had not hit a bottom in the prior quarter, as they previously suggested would happen. CEO Howard Schultz noted that consumer spending patterns were erratic and said the holiday selling environment was tough. "We do not expect to meet current consensus estimates for this quarter," said Starbucks CFO Troy Alstead.

Starbucks is more focused than ever before on cutting costs "out of necessity," Alstead said. It expects to save $200 million from cost cuts this year by making in-store labor more efficient, streamlining its supply chain and managing waste such as excess steamed milk or brewed coffee that is not sold after 30 minutes, Lisa Baertlein reports.

"Keeping our core customers during these hard times has to be job No. 1," said Terry Davenport, Starbucks' svp of marketing, since it would be more expensive to get them back. Executives said that, while Starbucks was not losing customers to the recession, some were visiting less often.

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