Sales up, but profits down at Staples

FRAMINGHAM, Mass. Staples announced that total company sales, including the results of Corporate Express, increased 19% to $5.8 billion compared to the first quarter of 2008. For the first quarter of 2009, net income attributed to the controlling interests declined 33% year-over-year to $143 million, and diluted earnings per share, on a GAAP basis, decreased 33% to 20 cents from the 30 cents achieved in the first quarter of last year.

“Staples associates drove solid earnings performance in a very tough sales environment, while also making excellent progress on the Corporate Express integration,” said Ron Sargent, Staples’ chairman and chief executive officer. “These results reflect our commitment to take great care of customers, tightly manage expenses and invest for future growth.”

U.S. comparable-store sales decreased 8% versus the first quarter of 2008, reflecting declines in average order size and weakness in durable categories such as business machines and furniture, somewhat offset by growth in ink and cut sheet paper.