logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Staples Stumbles in Q2, Slashes Guidance for 2013

By  +Follow August 21, 2013 11:06AM
Share:
Tickers Mentioned:

Shares of Staples Inc. (SPLS) are taking heat in morning trading on Wednesday after the U.S.’s largest office supply chain came up short on profits and sales in the second quarter, prompting the company to slash its guidance for the full year.

For the quarter ended August 3, Framingham, Massachusetts-based Staples reported revenue of $5.31 billion, down 2.2 percent from $5.43 billion in the second quarter last year.  Profits fell to $102.53 million, or 16 cents per share, from $120.43 million, or 19 cents per share, in last year’s quarter.

Wall Street was expecting earnings of 18 cents per share on revenue of $5.37 billion.

The company said that sales were negatively impacted one percent because of closing 103 stores in North America and Europe over the past year.  Soft sales overseas, especially in Europe and Australia, were an anchor on revenue.   International sales fell 8.3 percent compared to Q2 2012 to $946 million.

Tablet sales were up, along with facilities and breakroom supplies, and copy and print services.  Counterbalancing those gains were shrinking sales of business machines, computers, ink and toner.  Shrinking computer sales and increasing tablet sales is common occurrence in recent years, with retailers trying to shift inventory to meet demand in a competitive arena.

Same-store sales, a key growth metric, fell 3 percent as fewer customers came in Staples' stores and those that did spent less per order.  Online sales, a rare bright spot in the release, rose 3 percent compared to last year’s quarter.  Another bright spot was 2.3-percent growth in Staple’s North American commercial business, which sells directly to businesses.

Total operating expenses were trimmed from $1.19 million last year to $1.17 million.

Lower product margins and cost associated with growth initiatives contributed to operating income decreasing 118 basis points to 4.12 percent compared to last year’s quarter.  Gross margin tightened from 26.1 percent to 25.6 percent.

“We continue to make progress on our strategic plan to reinvent Staples.  We drove online sales growth and aggressively managed expenses during the second quarter, but this progress was offset by weakness in our retail stores and international businesses,” said Ron Sargent, chairman and chief executive at Staples.

During the second quarter, the company bought-back 6.4 million shares for an aggregate amount of $100 million.

Looking ahead, Staples cited the declines in the past three months as reason for chopping its sales and profit outlooks for the full 2013 year.  The company now sees a low single-digit decline in sales versus last year, compared to a previously guided low single-digit profit.  Full year earnings are expected in the range of $1.21 to $1.25 per share, down from between $1.30 and $1.35 per share that was stated last quarter.

Shares of SPLS were having a pretty good year through Tuesday’s close at $16.84, advancing almost 50 percent in 2013.  Today’s report carved into those gains with the stock shedding more than 12 percent in morning action to $14.75.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for SPLS
Charles V Payne
2 Mar 15 13:39:13
I'll handicap the Feed rate hike- what exactly happens and why not to panic- you will be tested. Plight of small business $SPLS to rescue?
SWINGSTOCKTRADERS
2 Mar 15 13:05:32
3-3-2015 CHART OF THE DAY! $SPLS BUY http://t.co/2FkavLiFK0
Livevol Community
2 Mar 15 12:50:04
Block Trade: 3:34 $SPLS Jun19 16 C (PHLX) 1.50 33000x Today's Full Report: http://t.co/UxmZrByts6
Livevol Community
2 Mar 15 12:36:03
Block Trade: 3:19 $SPLS Jun19 16 C (PHLX) 1.45 33000x Today's Full Report: http://t.co/UxmZrByts6
9trading Stocks
2 Mar 15 12:33:00
$SPLS Technicals are showing great signs of upside potential. The buy rating is set to 6, target: 21.92 http://t.co/tPGrrSXKwC
Capital Market Labs
2 Mar 15 09:58:02
$SPLS Stock Buy-backs Trend #CML http://t.co/NxLeYMKXXB
Zach Ingram
2 Mar 15 09:43:57
RT @NASDAQ: .@Staples rings the @Nasdaq Opening Bell! $SPLS http://t.co/hqX74cjz6t
Zach Ingram
2 Mar 15 09:43:53
RT @NASDAQ: Watch @Staples ring the @Nasdaq Opening Bell! $SPLS http://t.co/yofJGjFQfA
leahanne
2 Mar 15 09:41:32
Volume Alert - SPLS 16.76 Staples Inc $SPLS Hit a high today of 16.82 Closing the day 10:30 at 16.76 unch unch http://t.co/IQJHV5sLOG
leahanne
2 Mar 15 09:41:11
$SPLS Volume Alert - SPLS Stock 16.76 Staples Inc $SPLS Hit a high today of 16.82 Closing the day 10:30 at 16.76 unc http://t.co/2PrZCXyEhZ
Daily Contracts
2 Mar 15 07:22:02
Real-Time feed of company contracts, original agreements and executive updates from $SPLS http://t.co/XHDtnc4Qzi
Jeff Ostrowski
2 Mar 15 06:54:34
Office Depot built by one innovation, brought down by another $ODP $SPLS http://t.co/vbTWOfOQDT
Stock Market Intel
2 Mar 15 06:44:34
Stocks under bullish claws: $AMAT $PAL $EYES $SPLS *Get Reports* http://t.co/n3eKuOGD0X
Capital Market Labs
2 Mar 15 06:23:17
$SPLS Return on Equity Trend #CML http://t.co/cEkiIBepFn
Nancy Boots Davison
2 Mar 15 05:52:34
RT @Benzinga: It's Going To Be A Big Earnings Week For These Retailers $ANF $BBY $COST $SPLS $KR http://t.co/g6qjw9zEH1
TALENTEDBLONDE
2 Mar 15 05:43:18
RT @Benzinga: It's Going To Be A Big Earnings Week For These Retailers $ANF $BBY $COST $SPLS $KR http://t.co/g6qjw9zEH1
Wael Ahmed
2 Mar 15 05:35:06
7 Top earnings previews for the week ahead $SSYS $ANF $BBY $W $COST $KR $SPLS
invest correctly
2 Mar 15 05:28:03
Staples, Inc. Earnings Preview: Focus On Beyond Office Supply To Limit Fall In Profit $SPLS http://t.co/ocWV4YZOt5 #staples
Scott Thomas
2 Mar 15 04:22:51
RT @Benzinga: It's Going To Be A Big Earnings Week For These Retailers $ANF $BBY $COST $SPLS $KR http://t.co/g6qjw9zEH1
TradersLog.com
2 Mar 15 04:21:20
Investors Await the Jobs Report and More Earnings http://t.co/bB9IiGJtWM $BID $BBY $AMBA $AZO $PETM $ANF $COST $SPLS $FL
BreakingStocksNews
2 Mar 15 04:07:14
$SPLS $FSL $V $LL: US Index Futures Little Changed After Stock Rally in February: http://t.co/sPF2BPY3jJ
Alpha Maven
2 Mar 15 03:56:26
RT @Benzinga: It's Going To Be A Big Earnings Week For These Retailers $ANF $BBY $COST $SPLS $KR http://t.co/g6qjw9zEH1
Dave Kelly
2 Mar 15 03:53:01
RT @Benzinga: It's Going To Be A Big Earnings Week For These Retailers $ANF $BBY $COST $SPLS $KR http://t.co/g6qjw9zEH1
JAZ NACAO LIBERTA
2 Mar 15 03:49:10
RT @Benzinga: It's Going To Be A Big Earnings Week For These Retailers $ANF $BBY $COST $SPLS $KR http://t.co/g6qjw9zEH1
Anthony
2 Mar 15 03:47:53
RT @Benzinga: It's Going To Be A Big Earnings Week For These Retailers $ANF $BBY $COST $SPLS $KR http://t.co/g6qjw9zEH1
Anne Marie Baiynd
2 Mar 15 03:47:07
RT @Benzinga: It's Going To Be A Big Earnings Week For These Retailers $ANF $BBY $COST $SPLS $KR http://t.co/g6qjw9zEH1
Benzinga.com
2 Mar 15 03:46:44
It's Going To Be A Big Earnings Week For These Retailers $ANF $BBY $COST $SPLS $KR http://t.co/g6qjw9zEH1
Liquidity Matters
2 Mar 15 03:46:09
RT @YahooFinance: Staples small business loans? Yeah, they got that! http://t.co/1rCXoBkyZU $SPLS
Capital Market Labs
2 Mar 15 03:43:02
$SPLS Cash from Operations and Stock Buy-backs Trends #CML http://t.co/VpysIfN7vJ
4-traders.com
2 Mar 15 02:47:59
#Staples : to Announce Fourth Quarter and Fiscal 2014 Results on March 6 http://t.co/OBUeCih94k $SPLS
4-traders.com
2 Mar 15 02:47:57
#Staples : Launches Business Loans to Help Small Business Owners Make More Hap... http://t.co/a09J7l3IJ7 $SPLS
Breaking News Now
2 Mar 15 02:06:03
$HLF $SPLS: 5 Stocks: Herbalife (NYSE:HLF), Staples (NASDAQ:SPLS), Goodrich ...: http://t.co/WNuqXp2Vlk
StockNewsWires
2 Mar 15 01:41:02
$SPLS: Share Price of Staples, Inc. Drops by -0.15%: http://t.co/XO751TuwhH
Capital Market Labs
2 Mar 15 01:38:35
$SPLS Earnings Trend #CML http://t.co/22gzaviI4v
Capital Market Labs
1 Mar 15 22:35:18
$SPLS Assets Trend #CML http://t.co/LQ4M0tIVZg
James DiPlata
1 Mar 15 18:34:56
RT @TalkMarkets: #GoldmanSachs Contrasts #MutualFund Performance $SPY $AAPL $SPLS $JPM $EMC $FB $INTC $GE $PFE $BIIB $MMM $AM http://t.co/8…
TalkMarkets
1 Mar 15 17:36:09
#GoldmanSachs Contrasts #MutualFund Performance $SPY $AAPL $SPLS $JPM $EMC $FB $INTC $GE $PFE $BIIB $MMM $AM http://t.co/8GX0s1F1LT
Time=Best Stock
1 Mar 15 15:45:16
RT @10Xtrading: Investors Await the Jobs Report and More Earnings http://t.co/gpBTwUn8Fv $BID $BBY $AMBA $AZO $PETM $ANF $COST $SPLS $FL $T…
Stock Market Basics
1 Mar 15 15:42:59
RT @10Xtrading: Investors Await the Jobs Report and More Earnings http://t.co/gpBTwUn8Fv $BID $BBY $AMBA $AZO $PETM $ANF $COST $SPLS $FL $T…
Capital Market Labs
1 Mar 15 15:19:21
$SPLS Stock Buy-backs Trend #CML http://t.co/NxLeYMKXXB
Market Parse
1 Mar 15 15:00:20
@reinventlive $SPLS Your tweet has been featured on Market Parse, for iPhone. http://t.co/YHInvBCk4m
Market Parse
1 Mar 15 15:00:20
@SloanJudd Your tweet about $SPLS had a sentiment of 5 and was featured on Market Parse. http://t.co/5WyUW5R8WJ
Market Parse
1 Mar 15 15:00:20
@A_Irwin33 Your tweet about $SPLS had a sentiment of 2 and was featured on Market Parse. http://t.co/5WyUW5R8WJ
Mark Trader
1 Mar 15 13:44:03
http://t.co/U0VrKn1h21 has the most reliable picks in the market. The move fast and never fail. $JBLU $FTR $DHT $SPLS $WU $HALO $BBD
ExileOnBaySt
1 Mar 15 13:37:16
Earnings: Mon $BID, $MCF, $MYL, $NBR Tues $KATE, $BOBE, $DKS, $BBY Wed $ANF, $KFY Thurs $COO, $HRB, $JOY, $KR, $CIEN, $COST Fri $FL, $SPLS
10X Trading
1 Mar 15 13:24:50
Investors Await the Jobs Report and More Earnings http://t.co/gpBTwUn8Fv $BID $BBY $AMBA $AZO $PETM $ANF $COST $SPLS $FL $TGT
Paul Franke
1 Mar 15 12:16:03
Ranked #1-10 $ONNN $FSLR $KSS $SPLS $IFF $WBA $LH $EFX $UNH $ROVI Economy appears to be slowing in 2015. Not Investment Advice.
InvestWall
1 Mar 15 10:37:35
7 top earnings previews for the week ahead http://t.co/rr2wZfvhIH $SSYS $ANF $BBY $W $COST $KR $SPLS #InvestWall
Brian Sozzi
1 Mar 15 09:55:39
RT @A_Irwin33: Thought @BrianSozzi would like this. $SPLS $ODP http://t.co/9MTonKAqA7
A Irwin
1 Mar 15 09:54:24
Thought @BrianSozzi would like this. $SPLS $ODP http://t.co/9MTonKAqA7
				
				
By  +Follow August 21, 2013 11:06AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.