Staples Releases Performance for 2016's First Quarter
Sales declined for Staples, Framingham, Mass., in a quarter in which the company announced the sale of Staples Print Solutions and awaited the Federal Trade Commission's decision on its proposed acquisition of Office Depot.
Staples' sales for the quarter that ended April 30 reached $5.1 billion, a 3 percent decrease from the first quarter of 2015, the company announced last week. On a GAAP basis, Staples netted $41 million (or $0.06 per diluted share), which includes $66 million in pretax charges mainly tied to the failed Office Depot acquisition and store closures, as well as $32 million from its pending sale of Staples Print Solutions to Taylor Corp., North Mankato, Minn. With the removal of changes in foreign exchange rates and store closures in the past year, total sales only dropped 1 percent.
"We delivered a solid first quarter and we made good progress on our critical priorities," Ron Sargent, Staples’ chairman and CEO, said in a statement. "We grew sales in key categories beyond office supplies, drove growth in our mid-market contract business, and improved customer conversion in stores and online. We plan to build on our momentum as we pursue our strategic plan to enhance long-term value.”
In the first quarter of 2016, Staples closed 14 North American stores. It plans to close about 50 total in 2016. Its commercial business increased operating income by $14 million, reaching $148 million this quarter, and grew sales slightly to $2.12 billion.
Staples expects sales to continue to decrease over last year's numbers in the second quarter.
For more information, visit www.staples.com.