Staples Doubles Estimate of Internet Loss

Staples Inc. posted fiscal fourth-quarter profit in line with estimates but said it expects losses from its Internet business this year to be twice as much as previous estimates, sending its shares down 18%. The office supplies retailer’s profit from operations grew 27% to $129.2 million, or 28 cents a share in the latest quarter, matching forecasts, on a 25% increase in sales to $2.59 billion. Sales at Staples.com increased more than fivefold to $43.1 million in the quarter, and Staples said it expects the Web operation’s sales to more than double to about $250 million this year from $94.3 million last year as it boosts spending on advertising and promotions. But the unit’s losses are expected to hit $150 million this year, rather than the $75-million loss estimated earlier, Staples said. The retailer’s earnings in the latest quarter excluded a $9-million loss from the Internet operation. Shares in Framingham, Mass.-based Staples fell $4.69 to close at $21.63 on Nasdaq.