NEW YORK — Starbucks warned Wall Street on Thursday that its profit would fall short of analysts' expectations this quarter, just hours after Chief Executive Howard Schultz tried to assuage concerns about the recession's effect on the coffee retailer's sales and profits.

Chief Financial Officer Troy Alstead said that he could not provide specific guidance, but that same-store sales deteriorated by 9 percent in U.S. since the company's fiscal first quarter began at the end of September. In its fiscal fourth quarter, the company reported a decline of 8 percent in the U.S. _ a drop that many investors had hoped would be the company's steepest.

Sales have been particularly dismal in those states that have been hardest hit by foreclosures, most notably in California and Florida which make up about 30 percent of the company's store base.

"We were not immune to the deepening impact" of the economic crisis, said Alstead, who said it was too early to say how sales for the quarter would end.

The comments came during an analyst conference that began with Schultz attempting to curb anxiety on the Street about the chain's recent sliding sales and profits.

Starbucks shares were up 2.8 percent, or 24 cents, at $8.88 in afternoon trading. They had traded as high as $9.41 earlier in the day.

Schultz had told analysts that the company would emerge from an environment in which consumers are no longer as willing to spend on small luxuries like $4 lattes as a stronger, leaner and more socially conscious company.

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He said he had confidence that "when, not if, this environment does get better that Starbucks is going to be a stronger company for having gone through it."

But Schultz said to make its way through a period of falling consumer confidence, Starbucks could not drastically change its identity or its brand.

"This is not the time, after 30-plus years, after building one of the most recognized brands in the world, to throw the baby out with the bath water," he said.

Although most consumers have been demanding value, Schultz said Starbucks cannot destroy its identity as a premium brand and must offer value through that "lens."

"We are not a fast-food operator," he added. "We are not a discount business."

Several fast-food operators, most notably industry leader McDonald's Corp., have become more competitive with Starbucks by introducing their own latte-style drinks at lower prices.

Rather than compete by cutting prices, Starbucks has been offering loyalty cards that give registered customers discounts and giveaways. The newest rewards card, which costs $25 a year, has attracted about 350,000 users in its first four weeks in stores, Davenport said.

The company is also working with Costco Wholesale Corp. to offer consumers cards in bulk. Davenport said Starbucks expects to see $25 million in sales in January from the Costco deal once consumers begin to redeem the cards given as gifts during the holiday season.

The tough economy, with consumers focused on stretching their paychecks, is far different from the one Starbucks was in at its last analyst conference in 2006, when the company unveiled its plan to open 40,000 global stores.

Two years later _ with sales at established locations declining and profit sliding _ the company is in the midst of a cost-cutting campaign that forced the closure of more than 600 underperforming stores in the U.S and 61 stores in Australia. The company has also eliminated more than 1,000 positions.

Starbucks said it expects to see cost savings of about $200 million to $210 million in fiscal 2009 from initiatives already under way and has identified another estimated $200 million in possible savings that could come from labor costs or streamlining its distribution.

The company also didn't rule out the possibility of more store closures ahead, both in the U.S. and internationally. But any closures likely would not be on the same scale as the 600 announced this summer, executives said.

The company has also been introducing new products, from smoothies to oatmeal. More new products are on the way in 2009, including a line of tea-based, chai-style drinks made with tea and either milk or juice. The drinks will be in stores beginning early next year.