Office supplies retailer Staples Inc. (SPLS) Wednesday reported lower profit for the first quarter as sales slid year-over-year, amid a stronger dollar and store closures. Staples said its outlook for 2013 is unchanged. The stock is down 3 percent in pre-market trading.
Ron Sargent, Staples' chairman and CEO, said, "We're gaining momentum in many parts of our business. We're driving growth online and in categories beyond core office supplies, and we look forward to building on our progress throughout 2013."
Income attributed to the company fell to $169.93 million from $187.06 million. Earnings per share fell to $0.26 from $0.27.
For the first quarter, the company recorded an after-tax loss from discontinued operations of $494 thousand related to its European Printing Systems business. In the prior year period, the firm recorded an after-tax loss of $6 million from discontinued operations.
Earnings from continuing operations were $0.28 per share last year. On average, 16 analysts polled by Thomson Reuters expected earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.
Sales slid 3 percent to $5.81 billion from $6.03 billion. Analysts expected revenues of $5.91 billion.
Staples said sales growth was hurt about 1 percent by closure of 97 store closures in North America and Europe during the 12 months preceding the first quarter of 2013. The foreign exchange impact from the stronger U.S. dollar negatively impacted total company sales growth by around 50 basis points.
Sales from North American Stores and Online slipped 3.5 percent to $2.77 billion and comparable store sales were 2 percent lower. The decline reflected weakness in computers, business machines, software and technology accessories, partially offset by growth in tablets, facilities and breakroom supplies, and copy and print services.
North American Commercial sales grew 1.7 percent to $2.04 billion, driven by growth of facilities and breakroom supplies, partially offset by a decline in office supplies.
International Operations generated $1 billion in the quarter, a decline of 12.5 percent from last year, amid broad-based weakness in Europe and Australia.
Looking ahead, the company still expects full year earnings per share from continuing operations to be in the range of $1.30 to $1.35.
The company expects annual sales to increase in the low single-digits on a 52 week basis of $23.9 billion last year.
Wall Street expects fiscal year earnings of $1.33 per share on revenues of $23.84 billion.
SPLS closed at $14.75 on Tuesday. The stock is down 3 percent in pre-market activity.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.