UPDATE: Staples Posts Higher Q3 Earnings

Staples

reported a rise in its fiscal third-quarter earnings. The Framingham, Massachusetts-based company reported a quarterly profit of $216.8 million, or $0.34 per share, versus a year-ago profit of $135.2 million, or $0.21 per share. Excluding certain items, the company earned $0.37 per share. Staples in August had expected earnings of $0.34 to $0.39 per share. Its sales dropped 2.5% to $5.96 billion. However, analysts were estimating earnings of $0.36 per share on revenue of $5.93 billion. North American same-store sales declined 4%, while sales through Staples.com increased 9% in the quarter. Sales from its commercial operations in North America rose 3.3% to $2.16 billion. Sales from its international operations slipped 4% in US dollars to $970 million. Staples closed 127 stores in North America year to date. The company announced its plans to close 170 stores in North America this year. The company in August had planned to close 140 stores. During the quarter, Staples repurchased 4.6 million shares for $55 million. At the end of the quarter, Staples had $1.8 billion in liquidity, including $770 million in cash and cash equivalents. “We're building momentum as we reinvent Staples,” said Ron Sargent, Staples' chairman and chief executive officer. “During the third quarter, we accelerated growth in our delivery businesses, gained traction in categories beyond office supplies, and changed the way we work to drive cost savings.” For the current quarter, the company projects adjusted earnings of $0.27 to $0.32 per share and a drop in sales. Analysts expected earnings of $0.31 per share on 2% drop in sales. Staples shares rose 3.45% to $13.20 in pre-market trading.