Starbucks announced an unexpected decline in comparable sales for the second quarter, struggling with sluggish coffee demand in its two main markets, the United States and China. These figures marked the first dip in sales at the company’s established stores in nearly three years, which caused an 8% drop in share value during after hours trading. Starbucks CEO Laxman Narasimhan commented that these quarterly results fail to adequately represent the strength of their brand amidst tough conditions. The causes for these disappointing numbers include a decrease in demand within the United States, caused in part by boycotts adversely affecting store footfall, and a challenging macroeconomic climate affecting the sales of their more expensive beverages. Moreover, despite efforts to cement Starbucks’ presence in the premium coffee sector in China, the company is facing growing competition from more affordable, mass-market brands. This is particularly relevant for shoppers watching their spending. The chain’s worldwide comparable sales in the second quarter dropped by 4%, as opposed to a predicted rise of 1.44% by analysts, as per LSEG data. Specifically, comparable sales in China saw a 11% decline compared to a 10% increase in the prior quarter and a 3% drop in the United States, according to Reuters.