12:32 PM EDT, 07/02/2024 (MT Newswires) -- Starbucks ( SBUX ) continues to face a "challenging" earnings outlook amid persistent customer traffic and international sales hurdles, Oppenheimer said Monday in a report.

Oppenheimer lowered its per-share earnings forecast to $3.56 in 2024 and $3.99 in 2025, both trailing Wall Street estimates.

Traffic headwinds "appear in early innings," demonstrated by the 7% decline in Q2, and "international remains difficult," the report said.

China accounts for 55% of international sales, and the "consumer environment has not improved since last quarter and the promotional landscape remains intense," Oppenheimer said.

Starbucks ( SBUX ) stock has dropped 20% this year, and this downside is "more likely tied to additional earnings revisions," the report said.

Oppenheimer reiterated its perform rating on the company.

Starbucks ( SBUX ) shares fell 0.9% in recent trading Tuesday.

Price: 76.43, Change: -0.70, Percent Change: -0.91