Staples (SPLS) Reports In-Line Q2 EPS

Staples (Nasdaq: SPLS) reported Q2 EPS of $0.12, in-line with the analyst estimate of $0.12. Revenue for the quarter came in at $4.8 billion versus the consensus estimate of $4.78 billion.

Second Quarter 2016 Highlights

• Staples Business Advantage, the company’s North American contract business, achieved sales growth of one percent on a GAAP basis and three percent on a local currency basis after excluding a negative impact of approximately two percent due to the sale of the company’s Staples Print Solutions business during the second quarter of 2016.
• Excluding pre-tax charges of $953 million during the second quarter of 2016 and $34 million during the second quarter of 2015, the company improved operating income rate by 14 basis points on a non-GAAP basis.
• Grew operating income in North American Commercial by $8 million, or six percent, and improved operating income rate by 40 basis points versus the second quarter of 2015.
• Reduced operating losses in International Operations by $8 million, and improved operating income rate by 91 basis points versus the second quarter of 2015.
• Closed five stores during the second quarter of 2016 and 19 stores year to date in North America as part of a plan to close at least 50 stores in North America during 2016.
• Ended the second quarter of 2016 with $1.7 billion in liquidity, including $775 million in cash and cash equivalents.

GUIDANCE:

Staples sees Q3 2016 EPS of $0.32-$0.35.

For earnings history and earnings-related data on Staples (SPLS) click here.

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