Fewer Shoppers Lead To Staples 16% Income Skid
Framingham-based Staples Inc. saw its second quarter net income decrease by 16 percent to $150 million compared to $179 million for the same period a year ago.
But thanks to the office supply giant's $2.7 billion acquisition of Netherlands-based Corporate Express, the company saw total sales increase by 18 percent to $5.1 billion over the same period. Excluding the Corporate Express numbers, Staples' second quarter sales increased 3 percent to $4.4 billion.
The company said North American retail sales declined 1 percent and same-store sales slipped 7 percent on lighter customer traffic, smaller purchases and weakness in the retailer's furniture, desktop computer, printer and digital camera departments. Weakness in those departments was partially offset by a strong quarter in the laptop computer, ink and technology services departments, the company said.
The company said it is feeling increasing "margin pressure" in the North American market and has reduced average store inventory by 14 percent.
WBJ Web Partners
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