Restructuring charges and decreasing customer transactions at Starbucks have resulted in the company reporting a 77 per cent slump in profits for the second fiscal quarter of 2009.

In the 13 weeks to 31 March 2009, the international coffee shop operater generated just US$40.9m (£27.6m, 30.9m euro) in operating income, compared with $178.2m (£120.4m, 134.7m euro) for the same period last year. However, Starbucks chair Howard Schultz said that its results have been impacted by charges incurred through the closure of 123 US stores, which forms part of the company's plans to close 960 outlets worldwide in a bid to cut costs.

Schultz said: "During the second quarter, we began to see signs of traction from the cost reduction and customer-facing initiatives we've undertaken over the past year. Our focus on delivering value while staying true to the premium quality and values of the brand, is paying off."