Office supplies giant’s Q4 revenue, profit falls short

Staples swung to a loss in its fourth quarter, and said it would close more stores in 2017.



The retailer reported a net loss of $615 million for the quarter ended Jan. 28, or $0.94 per share, compared to a profit of $86 million, or 20 cents per share, for the year-ago period. Adjusted non-GAAP earnings came in at $0.25 per share, one cent below the consensus estimate.



Total sales for the quarter fell 3% to $4.6 billion. The chain’s North American retail sales fell 8% to $1.6 billion, impacted by store closures.



Total same-store sales were down 1%. Same-store sales in North America fell 7%.



Staples said it planned to close approximately 70 stores in North America in 2017, up from the 48 stores it closed last year.



“Our fourth quarter results were right in-line with our expectations, and I’m increasingly confident that we have the right plan and the right team to transform Staples and get back to sustainable sales and earnings growth,” said Shira Goodman, CEO, Staples.



For the full year, total company sales decreased 3% to $18.2 billion. Total same-store sales fell 1%.



Staples ended the year with 1,255 stores in the U.S. and 304 stores in Canada.