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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.


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Results for SPLS
Stocks Pastor
20 Oct 14 23:23:52
Bullish set up: $QIHU, $ZNGA, $ASNA, $SDRL, $SPLS, $CCL, $SRPT, $ESI, $NUAN, $FRAN, $BWC, $ROLL, $PKI, $PLCE
Stock Signaling
20 Oct 14 23:01:18
Movers and Shakers: Trading on Major News: $SPLS $SUNE $TRN $TXN $CNL $GCI $VFC $SAP $NLNK $NCR $IBM $SHOR $VRX $BTU $AMGN #investing #spy
Stock Moo
20 Oct 14 22:53:17
$spls: [$$] Staples Warns of Possible Card Data Breach http://t.co/gY6Dq4P8cU
Stock Moo
20 Oct 14 22:53:15
$spls: Staples says probing possible payment card data breach http://t.co/Oj2CdyAL7Y
MarketCurrents
20 Oct 14 22:52:34
Staples investigating possible data breach http://t.co/55U1eLB4A9 $SPLS
FonsieTrader
20 Oct 14 22:08:34
$SPLS Staples says investigating possible payment card data breach http://t.co/gW2RHCBnuT via @reuters
4-traders.com
20 Oct 14 21:35:02
Staples says investigating possible payment card data breach http://t.co/dOKeAiAyDR $SPLS $SFRK $HIS
12Stocks.com
20 Oct 14 16:01:55
Nasdaq100 #Stocks Performance $CELG $GMCR $EXPE $MNST $MU $ISRG $SPLS $MAR $TRIP $CHTR $COST $AMGN $TSCO more@ http://t.co/YdSIjG11yN
Karl banks
20 Oct 14 15:42:49
RT @wizzwatch: Top 10 Nasdaq 100 Movers for 10.20.2014: $SHLD, $CELG, $GMCR, $MNST, $MU, $ISRG, $SPLS, $CHTR, $COST, $AMGN .....
wizzwatch
20 Oct 14 15:26:43
Top 10 Nasdaq 100 Movers for 10.20.2014: $SHLD, $CELG, $GMCR, $MNST, $MU, $ISRG, $SPLS, $CHTR, $COST, $AMGN .....
Nine Stocks
20 Oct 14 14:18:38
MACD(12,26,9) Bull Crossover Stocks (Oct. 20): $EOG, $F, $FCX, $SPLS, $TSO, $UAL http://t.co/DR4C90YVyz
BNK Invest
20 Oct 14 13:36:36
Bullish Two Hundred Day Moving Average Cross - $SPLS $QQXT #dividends http://t.co/2G2LoYrfyg
Stockaholics
20 Oct 14 13:34:48
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/lWd4jUXeCy $SPLS $LLTC $AVGO
12Stocks.com
20 Oct 14 13:00:02
S&P500 #Stocks Performance $TSO $HAS $GCI $LUV $QEP $CELG $DAL $NFX $GMCR $IP $TRIP $LEN $EXPE $SPLS $MDT more@ http://t.co/RPeaHBZz9y
12Stocks.com
20 Oct 14 12:59:28
Nasdaq100 #Stocks Performance $CELG $GMCR $TRIP $EXPE $SPLS $MNST $TSCO $COST $ALXN $CHTR $AMGN $MAT $MAR more@ http://t.co/YdSIjG11yN
Stock Moo
20 Oct 14 12:52:57
$spls: Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus® http://t.co/L9HP6k3lOz
$Stocknewsalerts
20 Oct 14 12:42:42
$SPLS ADDING MULTIMEDIA Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus® From our Stock News Alerts App
Pzaa...Guy
20 Oct 14 12:41:07
$SPLS - ADDING MULTIMEDIA Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus® http://t.co/kO1en9vJiV
Stocks News&Markets
20 Oct 14 12:41:03
$SPLS - ADDING MULTIMEDIA Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus® http://t.co/AlXjRez5W0
NASDAQ
20 Oct 14 12:41:02
$SPLS - ADDING MULTIMEDIA Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus® http://t.co/6XISSyYcKb
BV Services
20 Oct 14 12:39:07
$SPLS ADDING MULTIMEDIA Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus®.. http://t.co/mXMJd5wP6M
Large Void Bot
20 Oct 14 12:00:30
Popular: $CELG, $GNC, $NCR, $VSI, $TXN, $UTX, $CVS, $GG, $NOK, $PM, $ENTA, $TLM, $STLD, $SPLS
Stock Moo
20 Oct 14 11:52:53
$spls: Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus® http://t.co/6hV2FJIP1g
Fish4Bucks
20 Oct 14 11:42:23
60m $SPLS Upper Trendline Pressure 12.270 #futures #stocks 02:42:10 PM http://t.co/WZwETG8am0 Signals based... http://t.co/WZwETG8am0
$Stocknewsalerts
20 Oct 14 11:33:45
$SPLS Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus® From our Stock News Alerts App
Pzaa...Guy
20 Oct 14 11:32:14
$SPLS - Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus® http://t.co/N1El0f5S7f
Stocks News&Markets
20 Oct 14 11:32:05
$SPLS - Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus® http://t.co/B5zl6QZpvY
NASDAQ
20 Oct 14 11:32:03
$SPLS - Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus® http://t.co/j5LwYLfwnQ
BV Services
20 Oct 14 11:30:05
$SPLS Staples Brings Apple Pay® to App for iPhone 6® and iPhone 6 Plus®.. http://t.co/nZELsjgUuL
Stockaholics
20 Oct 14 09:18:41
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/YX0NLZhRQ5 $SPLS $LLTC $AVGO
12Stocks.com
20 Oct 14 08:51:44
Nasdaq100 #Stocks Trend $GRMN $CHRW $SRCL $XLNX $ORLY $ILMN $ROST $MAR $TSCO $MNST $REGN $SPLS $ISRG $FB $DLTR @ http://t.co/YdSIjG11yN
12Stocks.com
20 Oct 14 08:51:28
Nasdaq100 #Stocks Performance $MAR $TSCO $CELG $EBAY $EXPE $NFLX $GILD $MU $ALXN $SNDK $AAPL $SPLS $VRTX more@ http://t.co/YdSIjG11yN
Stock Moo
20 Oct 14 07:52:43
$spls: Staples and Cynthia Rowley Collaborate on Exclusive Collection for the Office and Home http://t.co/YS3ja68C2F
$Stocknewsalerts
20 Oct 14 07:25:47
$SPLS Staples and Cynthia Rowley Collaborate on Exclusive Collection for the Office and Home From our Stock News Alerts App
Pzaa...Guy
20 Oct 14 07:24:08
$SPLS - Staples and Cynthia Rowley Collaborate on Exclusive Collection for the Office and Home http://t.co/d5yKohj5TN
Stocks News&Markets
20 Oct 14 07:24:05
$SPLS - Staples and Cynthia Rowley Collaborate on Exclusive Collection for the Office and Home http://t.co/oLwu1xiFK3
NASDAQ
20 Oct 14 07:24:04
$SPLS - Staples and Cynthia Rowley Collaborate on Exclusive Collection for the Office and Home http://t.co/K84hKFmCVP
BV Services
20 Oct 14 07:22:07
$SPLS Staples and Cynthia Rowley Collaborate on Exclusive Collection for the Office and Home.. http://t.co/rIc67Z6f5N
Adam Sharkey
20 Oct 14 07:11:37
@JBTD91 $SPLS up $0.20 today from what I paid, sold a covered call @ $12 for November for $0.60, nice clean profit of about $0.63/share
Stockaholics
19 Oct 14 20:30:12
IBIO Closed Up 69.84% After Our Penny Stock Alert! New Picks Coming: http://t.co/OG2rloNNni $SPLS $LLTC $AVGO
Paul Franke
19 Oct 14 20:17:58
Ranked #1-10 $YHOO $CSX $KSS $SPLS $NWL $DPS $DV $MGEE $BBY $HCN Highest "risk" stock market next 4 weeks in years? Not Investment Advice.
Ashburn Ions
19 Oct 14 10:58:05
$SPLS unusual options activity daily chart 13.00
TipRanks
18 Oct 14 23:55:49
Top Expert Consensus for $SPLS is Strong Sell https://t.co/R2gapFyV97 #NASDAQ #stocks
JAKrist
18 Oct 14 20:47:04
A Lasting Mark: Space Pens and the Workers Who Make Them http://t.co/o4xSULykNg via @daily_finance $SPLS
Galactico
18 Oct 14 17:20:24
Also watching $RAX, $CLVS, $SPLS, $LULU for long trades
FonsieTrader
18 Oct 14 06:11:50
Bearish ADX Crossovers 2/2 $MODN $NKTR $PRFT $PRKR $PVG $SA $SHLD $SPLS $SPTN $STAA $WIT http://t.co/PHlcUu7IfL
ModernGraham
18 Oct 14 06:08:09
Staples Inc. Annual Stock Valuation - 2014 $SPLS - #investing http://t.co/09we7AUtwQ
Sleek Money
17 Oct 14 15:23:12
Staples Target of Unusually High Options Trading $SPLS http://t.co/rDM6tiNKOI
US Banking News
17 Oct 14 15:04:33
Staples Target of Unusually Large Options Trading $SPLS http://t.co/GJjrtQaKcX
Ticker Report
17 Oct 14 14:43:44
Staples Target of Unusually Large Options Trading $SPLS http://t.co/swR26cq4TM
				
				
By  +Follow August 21, 2013 11:06AM
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