Staples, OfficeMax Raise Earnings Forecasts

Staples Inc. and OfficeMax Inc. raised earnings forecasts for this year while the office supply retailers reduce costs and increase sales to small-business customers as the U.S. economy rebounds.

Staples said profit will increase to 76 cents to 80 cents a share from 40 cents in the year ended Feb. 2. OfficeMax will be profitable after reporting eight quarterly losses. Analysts had forecast earnings of 76 cents for Staples and a loss of 27 cents for OfficeMax, according to Thomson Financial/First Call.

The companies said they are selling fewer computers to make room for products that have wider profit margins. Both companies’ shares have plunged from record highs during the last three years amid a glut in office supplies and a slowing economy.

The companies also reported fiscal fourth-quarter results. Staples had net income of $93.8 million, or 20 cents a share, contrasted with a year-ago loss of $111.7 million, or 23 cents. OfficeMax’s loss in the quarter ended Jan. 26 widened to $229.5 million, or $1.95 a share, from $85 million, or 76 cents, a year ago.

Sales fell 6% to $2.93 billion, with sales at stores open at least a year falling 4%, Staples said.

Office Max said fourth-quarter sales fell 10% to $1.27 billion. Sales at stores open at least a year dropped 3%.

Shares of Framingham, Mass.-based Staples fell 32 cents to $19.68 on Nasdaq.

OfficeMax, based in Shaker Heights, Ohio, rose 64 cents to $5.06 on the New York Stock Exchange.

Staples and OfficeMax trail rival Office Depot Inc. in sales.