Staples 4Q income down 18%

FRAMINGHAM, Mass. Staples announced that total company sales for the fourth quarter 2009 increased 4% to $6.4 billion compared with the fourth quarter of 2008. Net income for the fourth quarter 2009 declined 18% year over year to $234 million, and diluted earnings per share, on a GAAP basis, decreased 20% to 32 cents from the 40 cents achieved in the fourth quarter of last year.

“With a strong finish in the fourth quarter, our team delivered a solid 2009,” said Ron Sargent, Staples’ chairman and chief executive officer. “We made great progress on the integration of Corporate Express, took big steps toward building a global Staples brand, laid a solid foundation for growth in our technology services and copy and print businesses, and strengthened our international leadership team.”

For the full year 2009, total company sales increased 5% to $24.3 billion compared to the full year 2008. Net income decreased 8% year over year to $739 million, and diluted earnings per share, on a GAAP basis, decreased 10% to $1.02 from the $1.13 achieved last year.

Staples North American retail segment reported a comparable-store sales increase of 3% for the fourth quarter and a decrease of 2% for the full year.

For the first quarter 2010, Staples expects sales to increase in the mid single-digits compared to the same period of 2009. The company expects to achieve diluted earnings per share, on a GAAP basis, in the range of 22 cents to 24 cents for the first quarter 2010.

For the full year 2010, the company expects total company sales to increase in the low single-digits compared to the full year 2009. The company expects to achieve diluted earnings per share, on a GAAP basis, in the range of $1.18 to $1.28 for the full year 2010.