August 25, 2017

Staples earns $170M profit turnaround in second quarter

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Framingham-based office supplier Staples earned $63 million in net income for the second quarter.

Framingham-based office supplier Staples, which is under an agreement to be acquired by an investment firm for $7 billion, earned $63 million in net income for the second quarter, a turnaround from the $107 million it lost in 2Q 2016, the company announced Thursday

The profit turnaround came as the company's revenue dropped 3 percent to $3.9 billion, but Staples avoided the $167 million in operating losses it had in 2Q 2016 when it was still working on its eventual failed merger with Office Depot.

The New York City private investment firm under agreement with Staples to buy the office supplier, Sycamore Partners, is considering splitting the company into three parts in order to help fund the $7-billion purchase, possibly selling the retail locations to Office Depot.

The $3.9 billion in sales Staples reported on Thursday beat the forecasts of $3.8 billion, and the earnings per share were 10 cents.

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