August 20, 2014
Staples chairman and CEO Ron Sargent said that the company has more work to do to stabilize its retail business, following a 20% decline in net income to $81.88 million for the second quarter, from $102.53 million in the prior year.
Sargent added that the company will continue taking steps toward improving customer traffic, reduce expenses and close underperforming stores.
The company’s results included $101 million of pre-tax restructuring and other related charges primarily associated with the closure of 80 stores, along with its previously announced plan to close approximately 40 stores in North America during the second half.
Sales declined 2% to $5.22 billion – above analysts’ estimates. Same-store sales at Staples North American stores decreased 5%. E-commerce saw sales growth of 8%.
“We’re accelerating growth in our delivery businesses as customers turn to Staples for more products beyond office supplies,” said Sargent.
Staples forecast third-quarter adjusted earnings of 34 cents to 39 cents a share, excluding any potential impact on per-share earnings from restructuring and related activities. The retailer plans to take a pretax charge of $40 million to $75 million in the third quarter stemming from restructuring.
Source: Retailing Today
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