Staples Misses With 14% Profit Drop; Shares Fall
Staples says its fiscal fourth-quarter profit dropped 14 percent amid a number of charges related to its acquisition of Netherlands-based Corporate Express.
Net income at the world's largest office products retailer fell to $286 million, or 40 cents per share, from $333.2 million, or 47 cents per share, in the same quarter a year ago.
Analysts surveyed by Thomson Reuters predicted earnings of 42 cents per share on sales of $6.82 billion. Staples shares fell nearly 8.5 percent in premarket trading.
Besides the charges linked to the buyout of Corporate Express, Staples reversed a $57 million non-cash charge recorded in the third quarter. Excluding these items, adjusted earnings were $256 million, or 36 cents per share.
Staples says sales grew 16 percent to $6.17 billion from $5.32 billion, helped by the addition of Corporate Express.
Framingham, Mass.-based Staples said it would not provide earnings or sales outlooks due to limited near-term visibility.
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