(Bloomberg) -- Starbucks Corp.’s quarterly sales declined less than expected, signaling that the customer retreat that had rattled the coffee chain is starting to subside.

Same-store sales fell 4% in the fiscal quarter ended Dec. 29, the company said in an earnings release Tuesday. That’s an improvement from the 7% slump Starbucks reported in the prior quarter and a smaller decline than analysts polled by Bloomberg were anticipating.

Chief Executive Officer Brian Niccol, who has been in the job since September, is moving to remake the company after boycotts, price increases and slow service sparked a slump in performance. Some of the most recent steps to upgrade the diner experience, implemented on Monday, include bringing back ceramic mugs and the condiment bar. The company has also dropped the upcharge for nondairy milk and rolled out new advertising focused on its coffee heritage.

During a call with analysts, Niccol said the company is offering fewer discounts and increasing its marketing “to demonstrate the craft of our coffee” and emphasize “the premium experience you get from Starbucks.” That’s generating results, he said, with the company taking “baby steps in both of these areas, but all moving in the right direction.”

The results suggest Starbucks is already making headway, even if it comes at a cost to profit. Earnings per share were slightly higher than the average estimate while transactions in North America, the chain’s largest geography, declined in line with expectations. Operating margin in the region fell because of higher spending in wages, benefits and hours, and due to the removal of the nondairy milk upcharge.

Sales fell by less than analysts anticipated in China, a key market where growth has suffered.

The shares slipped less than 1% at 5:43 p.m. in extended New York trading, erasing an earlier gain after Chief Financial Officer Rachel Ruggeri told analysts that general and administrative costs will spike in the company’s current quarter, since the company will be paying severance and other benefits on the back of an impending restructuring.

Earnings per share in the period are also expected to be the lowest this fiscal year.

In-Store Experience

Starbucks is looking to prioritize customers and improve the in-store experience, starting with the US and Canada. As part of those efforts, the company has started restricting cafe access to paying customers and their guests, a reversal from an open-door policy that was adopted in 2018 after two Black men were arrested for waiting in a Philadelphia store without ordering. The new rules have divided baristas.