Staples 3Q earnings down 42%

FRAMINGHAM, Mass. Staples announced that total company sales for the third quarter increased 34% to $7 billion compared to the third quarter of 2007. Net income declined 43% year-over-year to $157 million, and earnings per share, on a diluted basis, decreased 42% to 22 cents, from the 38 cents achieved in the third quarter of last year.

North American Retail sales decreased 6% in the third quarter of 2008 to $2.6 billion, and comparable-store sales decreased 8% versus the third quarter of 2007. This reflects declines in average order size and customer traffic, as well as weakness in computers and accessories, business machines, and furniture, partially offset by strength in technology services and ink.

“Staples’ formula of focusing on customers and investing in our business continues to pay off with market share gains in these challenging times,” said Ron Sargent, Staples’ chairman and ceo. “We are pleased with our progress integrating Corporate Express, encouraged by our plans to drive store productivity in North American Retail, and enthusiastic about our top and bottom line opportunities in International.”