International Business

Framingham, Mass. -- Staples reported Wednesday that profit for the quarter ended July 28 plummeted 32% to $120.4 million from $176.4 million, prompting the office supply retailer to cut its full-year guidance.

Soft sales and slowed traffic in North America sent total revenue downward 6% to $5.5 billion; North American retail sales slipped 3%. Same-store sales declined 2%. Sales abroad fell 18%.

Mexico City -- Multiple reports on Wednesday revealed that Wal-Mart Stores’ Mexican arm has been leveled with new allegations concerning tax evasion and money-laundering schemes.

The accusations against Walmex were outlined in a letter by U.S. Rep. Henry Waxman, sent Tuesday to Wal-Mart CEO Michael Duke and suggesting that the company “"may have had compliance issues relating not only to bribery, but also to 'questionable financial behavior' including tax evasion and money laundering in Mexico."

FRAMINGHAM, Mass. — If Staples is a proxy for the health of the U.S. economy don’t look for conditions to improve any time soon.

Minneapolis -- Target Corp. reported Wednesday that profit for the second quarter remained essentially flat at $704 million.

Sales advanced 3.5% to $16.45 million, boosted by a 3.1% same-store sales rise in the quarter but missed Wall Street’s expected $16.75 million in revenue.

The addition of new stores and a 3.8% same-store sales increase enabled Dick’s Sporting Goods to report record second-quarter results, so long as a botched investment in a leading U.K retailer is excluded.

Sale for the quarter ended July 28 increased 10% to $1.4 billion due primarily to a 3.8% comps increase combined with the addition of four new stores. The 3.8% increase consisted of a 2.9% increase at Dick’s Sporting Goods stores, a 4.4% increase at Dick’s Golf Galaxy stores and a 34.6% increase in the company’s e-commerce business.

Bentonville, Ark. -- Wal-Mart Stores Inc. indicated Tuesday it has received the OK from Chinese regulators to move forward with its majority stake in e-commerce company Yihaodian.

According to a report by Wall Street Journal, which cited a Wal-Mart spokesperson in Beijing, the approval will allow Wal-Mart to expand its online presence in China. Under the deal, Wal-Mart will increase its stake in Yihaodian from 18% to 51%.

Financial terms of the transaction have not been disclosed.

Sharon, Pa. -- Casual-dining chain Quaker Steak & Lube said Monday it has opened its 50th restaurant in Lakewood, Ohio, and is on track to open 10 additional restaurants this year. The brand also will be expanding to six new markets with five franchise groups over the next several years.

"Over the past six months, we signed agreements to develop 11 new restaurants around the country, including three corporate locations in Texas," said John Longstreet, president and CEO.

Hoffman Estates, Ill. -- A report released Monday by the Associated Press said that Sears Holdings Corp. would be spinning off its Hometown and Outlet stores, along with some hardware stores, into a separate, publicly traded company.

Earlier this year, Sears had revealed it would split the companies but had not indicated the new organization would be a separate public entity.

There are approximately 1,238 Hometown, Outlet and hardware stores. Five Hometown stores have been closed, along with eight hardware stores and one Outlet unit.