Staples has mixed Q1
Staples reported mixed results for its first quarter as earnings came in line with expectations but its revenue fell short.
The office supplies retailer reported adjusted earnings of 17 cents a share, in line with Wall Street forecasts. Total sales fell 5% to $4.1 billion, short of analysts’ expectations. Total company same-store sales fell 3%, beating estimates.
Staples said it expects to generate at least $500 million of free cash flow for the full year 2017, As previously announced, the chain plans close approximately 70 stores in North America this year.
“2017 is off to a good start and, consistent with our strategy, we drove solid sales growth in the mid-market and improved profitability in North American Retail during the first quarter,” said Shira Goodman, CEO, Staples. “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.’”
Staples closed 18 stores during the first quarter of 2017. It ended the quarter with 1,237 stores in the United States and 304 stores in Canada.
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