UPDATE: Staples Posts Upbeat Q2 Revenue
Staples (NASDAQ: SPLS) reported better-than-expected second-quarter revenue.
The Framingham, Massachusetts-based company posted quarterly net earnings of $81.9 million, or $0.13 per share, versus $102.5 million, or $0.16 per share, in the year-ago period. Its adjusted earnings came in at $0.12 per share.
Its sales dropped to $5.22 billion versus $5.32 billion. However, analysts were projecting earnings of $0.11 per share on sales of $5.16 billion.
North American same-store sales dropped 5.8%, while sales through Staples.com climbed 8% in the quarter.
North American stores and online sales dropped 6% to $2.3 billion, while North American commercial sales rose 3% to $2.0 billion. International operations sales fell 1% in US dollars to $941 million.
Staples expects Q3 adjusted earnings of $0.34 to $0.39 per share. It also projects to record $40 million to $75 million in pretax charge in the third quarter associated with restructuring and other related activities.
During the quarter, Staples closed 80 stores in North America and projects to close around 140 stores in North America during 2014.
Staples repurchased 3.5 million shares for $40 million during the quarter.
“We're accelerating growth in our delivery businesses as customers turn to Staples for more products beyond office supplies,” said Ron Sargent, Staples' chairman and chief executive officer.
Staples shares gained 0.26% to $11.65 in pre-market trading.
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