Staples Q2 Earnings Meet Expectations, But Sales Slightly Miss

Staples Inc. on Wednesday reported a decline in net earnings and sales for the second quarter. Earnings were $36 million, or 6 cents a share, down from $82 million, or 13 cents a share, a year ago. The office products retailer said the results included pretax charges of $24 million stemming from restructuring and related activities, as well as $34 million related to its purchase of Office Depot. Adjusted earnings for the most recent quarter came in at 12 cents a share. Sales were $4.94 billion compared with $5.22 billion a year earlier. Analysts polled by FactSet had expected earnings of 12 cents a share on sales of $4.96 billion. For the third quarter, Staples said it "expects sales to decrease" compared with the same period last year, and adjusted earnings are likely to be 33 cents to 36 cents a share. The forecast "reflects a sequential increase in the unfavorable impact of the stronger U.S. dollar on sales and earnings," said Staples.