Staples cuts outlook after weak results abroad
US office supply retailer sees dismal sales in Europe and Australia
A Staples store in Torrance, California. The world’s largest office supplies chain cut its annual profit forecast because of declines in its retail and international business. Photograph: Bloomberg
Staples reported weaker- than-expected quarterly results yesterday on dismal sales in international markets such as Europe and Australia, prompting the largest US office supply retailer to cut its outlook for the year.
Lower customer traffic led to a 6 per cent decline in sales at European stores open at least a year. The company also tied some of the weakness to the closure of 49 European stores.
Net earnings fell to $102.5 million, or 16 cents a share, in the second quarter ended on August 3rd from $120.4 million, or 18 cents a share, a year earlier. Sales fell 2 per cent to $5.31 billion. – (Reuters)