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Staples Stumbles in Q2, Slashes Guidance for 2013

By  +Follow August 21, 2013 11:06AM
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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for SPLS
Thudder & Wicks
28 Aug 15 07:26:24
Postal Union Continues Effort to Stop $SPLS, $ODP Merger http://t.co/sJ6DQ2BexK
StockNewsWires
28 Aug 15 06:42:02
$SPLS $MA $CLD $CBS: Active Stocks News Recap: Staples, Inc. (NASDAQ:SPLS …: http://t.co/ek1go9bIpZ
ProTradersNews
28 Aug 15 06:27:03
$SPLS $ASB: Worth Watching Stocks: Dow Chemical Co (NYSE:DOW), Staples …: http://t.co/vRANR60JPR
InvestWithConf
28 Aug 15 05:24:04
$SPLS is rated BUY, 33.5% upside by Wall Street analysts based on average ratings/targets http://t.co/HjONHQmIlM http://t.co/0g51sVXkjS
Sleek Money
28 Aug 15 01:07:03
Staples Short Interest Up 9.8% in August $SPLS http://t.co/lG20vfdy3U
Dakota Financial
27 Aug 15 23:24:05
Staples Short Interest Up 9.8% in August $SPLS http://t.co/YZZXmxEARC
DailyStockPicks
27 Aug 15 23:20:40
$ANFI huge bounce play as short attack put in doubt. 100%-200% upside potential $COF $SPLS $PCG investors read http://t.co/L1jwUV6Bag
Consumer News
27 Aug 15 23:18:15
Staples Short Interest Up 9.8% in August $SPLS http://t.co/qtRvFlRlZO #acn
Ticker Report
27 Aug 15 23:15:16
Staples Short Interest Up 9.8% in August $SPLS http://t.co/53LFuzUXCK
US Banking News
27 Aug 15 23:14:25
Staples Short Interest Up 9.8% in August $SPLS http://t.co/EPCDmhoRi3
ProTradersNews
27 Aug 15 23:12:02
$SPLS: Staples Short Interest Up 9.8% in August (SPLS): http://t.co/xn5oXuuMo7
Irma Doucet
27 Aug 15 15:12:56
$SPLS Staples Deal Draws U.S. Queries About Corporate Customer Harm http://t.co/XMrtl0FOLd
Analyst Actions
27 Aug 15 14:06:02
$SPLS: Analyst action by Citigroup on Staples: http://t.co/oiXawBaXmG http://t.co/ZUEpzBZZhp
v2 Ratings Bot
27 Aug 15 13:53:51
$SPLS looks overpriced (rated 1.8 as price is up to 13.72). Price vs ratings chart: http://t.co/mPcCLRkDpr
IVolatility
27 Aug 15 11:43:24
RT Options Scanner shows Staples $SPLS December 15 call option implied volatility decreased 9% to 42 according to iVolatility.
v2 Ratings Bot
27 Aug 15 09:38:52
$SPLS PE Ratio up 11x to 166.62 from last year http://t.co/EzlflJGfra
leahanne
27 Aug 15 08:34:04
Volume Alert - SPLS 13.44 Staples Inc $SPLS Hit a high today of 13.49 Closing the day 10:30 at 13.44 +0.11 +0. http://t.co/Tr5DOOYbVo
Stock Rocket
27 Aug 15 07:15:03
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27 Aug 15 07:08:30
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27 Aug 15 07:07:23
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Penny Stockington
27 Aug 15 07:03:42
Our Stock Alert On $GEQU Nearly QUADRUPLED In 2 Weeks! Special Update: http://t.co/EYbtsRpShV $SPLS $LLTC $AVGO
ProVesting
27 Aug 15 06:19:05
$SPLS $LUV: Most Active Services Stocks- Staples, Inc. (NASDAQ:SPLS …: http://t.co/CYuPXusNny
$Stocknewsalerts
27 Aug 15 05:03:11
$SPLS Staples Helps Small Businesses Make More Happen with Lower Prices on its Copy & Print Services From our Stock News Alerts App
Pzaa...Guy
27 Aug 15 05:01:05
$SPLS - Staples Helps Small Businesses Make More Happen with Lower Prices on its Copy & Print Services http://t.co/Wyt0L1ZvJY
Paul Henry
26 Aug 15 20:10:58
We Sent A SECRET New Penny Stock Pick To Our Platinum Members! Get Exclusive Special Access: http://t.co/sJCFystTVz $SPLS $LLTC $AVGO
Michael James
26 Aug 15 20:08:25
Subscribers Saw A 525% Gain On $GEQU & A SECRET New Pick Is Out! See The Private Info: http://t.co/RzgF9M02nG $SPLS $LLTC $AVGO
Michael Cook
26 Aug 15 20:07:20
After 3,000% Gains In The Past Year, We Have A Major New Pick Out! Big Update: http://t.co/QTGaTmzV8y $SPLS $LLTC $AVGO
Analyst Actions
26 Aug 15 17:16:03
$SPLS: Analyst action by Citigroup on Staples: http://t.co/oiXawBaXmG http://t.co/spkOXJWBlF
v2 Ratings Bot
26 Aug 15 15:49:47
$SPLS PE Ratio up 11x to 165.5 from last year http://t.co/EzlflJGfra
Activist Stocks
26 Aug 15 15:02:00
Since then, $SPLS down 22% and $YHOO down 27% 2/2
John Turner
26 Aug 15 12:42:26
$SPLS Staples Deal Draws U.S. Queries About Corporate Customer Harm http://t.co/clj36BxVbH
Clair Voight
26 Aug 15 12:41:56
$SPLS Staples, Inc. Short Interest Update http://t.co/xgkDEPlxBA
$Stocknewsalerts
26 Aug 15 11:59:23
$SPLS Staples, Madison Pettis and ABC7 Eyewitness News reporter Elex Michaelson Support Los Angeles Unified S From our Stock News Alerts App
Pzaa...Guy
26 Aug 15 11:57:01
$SPLS - Staples, Madison Pettis & ABC7 Eyewitness News reporter Elex Michaelson Support Los Angeles Unified http://t.co/VXLI5DZDQz
Scott Hough
26 Aug 15 09:17:16
Proposed Staples-Office Depot Merger Prompts FTC Scrutiny Into Competition http://t.co/qnJCTyoDqM $ODP $SPLS #stocks http://t.co/z7VTtwgkM6
BreakingStocksNews
26 Aug 15 06:13:03
$SPLS: Most Active Services Stocks: Staples, Inc. (NASDAQ:SPLS), Whole …: http://t.co/wNffKLgxeR
Paul Henry
26 Aug 15 06:11:29
We Sent A SECRET New Penny Stock Pick To Our Platinum Members! Get Exclusive Special Access: http://t.co/sJCFystTVz $SPLS $LLTC $AVGO
Michael James
26 Aug 15 06:10:44
Subscribers Saw A 525% Gain On $GEQU & A SECRET New Pick Is Out! See The Private Info: http://t.co/RzgF9M02nG $SPLS $LLTC $AVGO
Samuel Brown
26 Aug 15 06:10:27
$SPLS Staples, Inc. Short Interest Update http://t.co/D1GWVMFnLl
Michael Cook
26 Aug 15 06:10:17
After 3,000% Gains In The Past Year, We Have A Major New Pick Out! Big Update: http://t.co/QTGaTmijJY $SPLS $LLTC $AVGO
Sleek Money
26 Aug 15 04:50:44
Citigroup Inc. Lowers Staples Price Target to $15.00 $SPLS http://t.co/gMhH2AGDRu
The Legacy News
26 Aug 15 04:43:09
Staples Earns “Hold” Rating from Deutsche Bank $SPLS http://t.co/lmUtIhDO2S
BreakingStocksNews
26 Aug 15 03:45:04
$SPLS $ZQK: Momentum Stocks: Staples, Inc. (NASDAQ:SPLS), Xtant Medical …: http://t.co/Jj9iEs6Y2O
12Stocks.com
26 Aug 15 03:02:04
Weekly Nasdaq100 #Stocks Performance $GMCR $NTAP $EXPD $ALTR $WFM $BBBY $CHKP $SWKS $ILMN $MAT $SPLS $ISRG more@ http://t.co/YdSIjG11yN
Ticker Report
26 Aug 15 02:09:27
Analysts’ Recent Ratings Changes for Staples $SPLS http://t.co/klnDT248bi
US Banking News
26 Aug 15 02:08:28
Analysts’ Recent Ratings Changes for Staples $SPLS http://t.co/ftwB21JDVU
Consumer News
26 Aug 15 01:56:28
Analysts’ Recent Ratings Changes for Staples $SPLS http://t.co/lfD0plwir3 #acn
Dakota Financial
26 Aug 15 01:54:19
Analysts’ Recent Ratings Changes for Staples $SPLS http://t.co/7uQCcLsnvg
mokrari by @edi_bice
25 Aug 15 15:05:06
Best outperformers ranked 95-100 $QVCA $AMTD $SPLS $DF $LMCA
SADIF-Analytics
25 Aug 15 12:49:20
Staples, Inc. $SPLS Has been analysed in a new due diligence report by SADIF. http://t.co/pDbO1xsMsj
				
				
By  +Follow August 21, 2013 11:06AM
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