US coffee giant Starbucks is set to see its steepest fall in sales in the fourth quarter of 2024 since the coffee stores were shut down during the COVID-19 pandemic, according to preliminary results released Tuesday. The announcement comes as the company continues to face Gaza war-related boycotts across the world, which are related to the organization’s perceived support of Israel.

The firm reported a preliminary fourth quarter revenue that fell 3% year over year to $9.1 billion, while adjusted earnings per share fell 24% to $0.80. Global comparable store sales declined 7%, the sharpest fall since the fourth quarter of 2020, when pandemic lockdowns pushed same-store sales down 9%.

The company said in its results that the fall was mainly driven by softness in the North American market’s revenues in the quarter, specifically a 6% decline in US comparable store sales, driven by a 10% decline in comparable transactions. However, this was partially offset by a 4% increase in average ticket, Starbucks said.

The company has been grappling with protests and boycott campaigns lauon social media around the Israel-Gaza war and the union fight in the United States.