Staples Inc. Income Drops 31%, Company Cuts Outlook

"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," said Ron Sargent, chairman and chief executive officer for Staples. While sales in core retail categories dropped, he stated that "we continue to build momentum in categories beyond office supplies."

We're taking a hard look at each of our businesses, and we plan to make significant changes to improve results," Sargent said. "We're also building a plan to reallocate resources, take advantage of our best growth opportunities, and drive increased cost savings."

Sargent said that the company had re-evaluated its full-year outlook as a result of the quarter's figures, and that full-year sales were now expected to be flat compared to 2011. Following the announcement, shares in Staples Inc. dropped 15 percent to $11.49, the lowest level since 2003.

For more information or to see the full report, visit Staples' Investor Relations website.