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Staples stock was down $2.25 per share when I checked it a few minutes ago.
Article by Saabira
Chaudhuri on Aug 21st, reporting for MarketWatch.com
Chaudhuri on Aug 21st, reporting for MarketWatch.com
Staples Inc.’s SPLS -13.54% fiscal second-quarter
earnings slumped 15% as the office-supply giant continued to be pressured by
weak sales abroad, while North American retail sales also declined.
earnings slumped 15% as the office-supply giant continued to be pressured by
weak sales abroad, while North American retail sales also declined.
Citing weaker-than-expected results for its second quarter,
Staples lowered its view for the year, now expecting sales to decline in the
low single digits and per-share earnings to be $1.21 to $1.25. Staples
previously said it expected sales to rise in the low single digits from a year
earlier, along with per-share earnings of $1.30 to $1.35.
Staples lowered its view for the year, now expecting sales to decline in the
low single digits and per-share earnings to be $1.21 to $1.25. Staples
previously said it expected sales to rise in the low single digits from a year
earlier, along with per-share earnings of $1.30 to $1.35.
Staples, the largest office-supply chain in the U.S., has seen
its profit challenged by an increasingly digitized office, broad-based weakness
in Europe and Australia, and greater competition from mass merchants and online
sellers. However online sales recently have been a relative bright spot, a
trend that continued in the latest period, with the company logging 3% growth
from Staples.com sales.
its profit challenged by an increasingly digitized office, broad-based weakness
in Europe and Australia, and greater competition from mass merchants and online
sellers. However online sales recently have been a relative bright spot, a
trend that continued in the latest period, with the company logging 3% growth
from Staples.com sales.
“We drove online sales growth and aggressively managed
expenses during the second quarter, but this progress was offset by weakness in
our retail stores and international businesses,” Chief Executive Ron
Sargent said Wednesday.
expenses during the second quarter, but this progress was offset by weakness in
our retail stores and international businesses,” Chief Executive Ron
Sargent said Wednesday.
The company reported its North American same-store sales–which
exclude sales from Staples.com–fell 3%, reflecting a decline in traffic and in
order size. Meanwhile, Europe same-store sales slid 6% amid lower traffic.
exclude sales from Staples.com–fell 3%, reflecting a decline in traffic and in
order size. Meanwhile, Europe same-store sales slid 6% amid lower traffic.
For the quarter ended Aug. 3, Staples posted a profit of $102.5
million, or 16 cents a share, versus a year-ago profit of $120.4 million, or 18
cents a share, a share.
million, or 16 cents a share, versus a year-ago profit of $120.4 million, or 18
cents a share, a share.
Sales fell 2.2% to $5.31 billion.
Analysts polled by Thomson Reuters recently expected per-share
earnings of 18 cents on revenue of $5.37 billion.
earnings of 18 cents on revenue of $5.37 billion.
Gross margin narrowed to 25.6% from 26.1%. Operating expenses
fell 1.7%.
fell 1.7%.
At the North American commercial segment, which sells office
products and services directly to businesses, sales grew 1.3%. North American
stores and online sales slipped 2.3%. Meanwhile international sales declined
8.3%.
products and services directly to businesses, sales grew 1.3%. North American
stores and online sales slipped 2.3%. Meanwhile international sales declined
8.3%.
Shares
of Staples closed Tuesday at $16.84 and were inactive in recent premarket
trading. The stock has risen 14% in the past three months.
of Staples closed Tuesday at $16.84 and were inactive in recent premarket
trading. The stock has risen 14% in the past three months.
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