Staples gives grim full-year outlook
Office products supplier Staples Inc. gave a bleaker outlook for full-year profit after small businesses reined in purchases.
Second-quarter earnings per share fell an estimated 15% after the fifth consecutive drop in North American same-store sales, Staples said in a statement giving preliminary results. For the full fiscal year, profit excluding the acquisition of Corporate Express will be little changed from 2007, the company said.
Framinghan, Mass.-based Staples doesn’t anticipate sales trends will improve anytime soon, Chief Financial Officer John Mahoney said.
Revenue for the three months through Aug. 2 rose 3%, Staples said. Sales in North America fell 1%, with sales from stores open at least a year dropping about 7%.
Shares of Staples fell $1.03, or 4.2%, to $23.55.