Staples' Sales Fall; Lowers Forecasts
Staples turned in disappointing numbers for its second quarter, and says it is taking steps to improve its top-line performance. The Framingham, Mass.-based office supply retailer says total sales for the quarter fell 6% to $5.5 billion, and 3% on a local currency basis. Comparable store sales in the U.S. declined 2%, led by decreases in computers and software. Net income fell to $120.4 million, from $176.4 million in the same period a year ago.
“Our second quarter results fell short of our expectations due to softer than expected sales trends in North America and ongoing weakness in Europe and Australia,” says CEO Ron Sargent, in its earnings release. “We continue to build momentum in categories beyond office supplies, but these improvements were more than offset by weakness in computers and core office supplies during the second quarter.”
The company lowered its sales and earnings forecast for the year: “We’re taking a hard look at each of our businesses, and we plan to make significant changes to improve results,” he says.
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