Staples profit drops 33% in first quarter

Source: Agencies | May 28, 2009, Thursday |

Print Edition

OFFICE products retailer Staples Inc said yesterday that its profit fell 33 percent in the first quarter as higher operating expenses and one-time costs more than outweighed the benefit of a newly purchased supply chain business.

The world's largest office supply chain said it earned US$143 million, or 20 US cents per share, down from US$212.3 million, or 30 US cents per share, in the same period last year.

The Framingham, Massachusetts-based company's profit in the latest quarter was 22 US cents per share excluding one-time integration and restructuring expenses related to the acquisition of office supply chain Corporate Express NV last summer.

Analysts polled by Thomson Reuters projected income of 21 US cents per share, on average.

Staples reported higher cost of goods and occupancy costs and a jump in amortization and selling, general and administrative expenses.

Sales, meanwhile, grew 19 percent to US$5.82 billion. Analysts had predicted revenue of US$5.85 billion.

In the company's North American retail division, same-store sales fell 8 percent. Same-store sales, or sales at stores open at least a year, is a key indicator of retail performance.

The retailer said the dip reflected a drop in average order size and weakness in "durable categories" like business machines and furniture.

Consumer

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Staples profit drops 33% in first quarter

Email this to your friend