Staples 2Q Profit Drops 16%

Framingham, Mass. Staples Inc. said on Wednesday that quarterly profit fell 16% as customers cut back amid the slumping U.S. economy.

Earnings declined to $150.2 million in the second quarter ended on Aug. 2 from $178.8 million a year earlier.

Staples had previously said savings from its $2.65 billion purchase of Dutch peer Corporate Express were lighter than some analysts had expected.

Sales rose 18.3% to $5.07 billion, driven by the Corporate Express acquisition.

Sales at North American retail stores fell 1%. Same-store sales fell 7% in both North America and Europe.