World’s largest office-supply retailer, Staples Inc., reported lower than expected quarterly profit on weak demand for big-ticket items along with continuous delay in purchase by the small business.
Company also provides the forecast full-year earnings for the fiscal year 2010 well below analysts’ expectations.
Company reported Net income dropped to $233.9 million, or 32 cents a share, in the quarter ended Jan. 30 from $286 million, or 40 cents, a year earlier whereas sale of the company reported an increase of 3.8 percent to $6.411 billion from $6.17 billion over a period of time.
Sales of office supplies slowed as both consumers and businesses cut back during the recession. North American delivery sales dipped 1 percent to $2.4 billion, while North American retail sales climbed 8 percent to $2.6 billion. Overseas sales increased 7 percent to $1.4 billion for the quarter.
For the fiscal year 2010, company expects an adjusted profit of $1.23 to $1.33 per share, with sales up in the low single-digits and for the first quarter company expects adjusted profit of 25 cents to 27 cents per share, with sales up in the mid single-digits.