Staples's Stock Jumps After Same-stores Sales Beat, While Profit Matched Expectations
Shares of Staples Inc. jumped 3.5% in premarket trade Tuesday, after the office supply retailer beat same-store sales expectations, while matching on profit and coming up short on revenue. The net loss for the quarter to April 29 was $815 million, or $1.24 a share, after a profit of $41 million, or 6 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 17 cents, matching the FactSet consensus. Revenue fell 4.9% to $4.15 billion, missing the FactSet consensus of $4.52 billion, as North American retail and delivery sales declined more than expected. Same-store sales declined 2.6%, beating the FactSet consensus for a decline of 4.1%. The company expects second-quarter adjusted EPS of 10 cents to 13 cents, compared with the FactSet consensus of 13 cents. "Based on our success growing categories beyond office supplies, we're intensifying our focus on several key growth categories including facilities supplies, breakroom supplies, furniture, technology solutions, and promotional products, or what we now refer to as 'Pro Categories,'" said Chief Executive Shira Goodman. The stock has gained 3.0% year to date through Monday, while the SPDR S&P Retail ETF has lost 4.5% and the S&P 500 has advanced 7.3%.
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