Staples first quarter profit drops 39%

Traffic problems continued to hinder Staples in the first quarter even as the company awaits regulatory approval of its merger with Office Depot.

Staples Inc. reported a 39% decline in first-quarter profit amid declining sales and store closures. Profit was $59 million, down from $96 million a year earlier.Revenue slid 6.9% to $5.3 billion. Online sales grew 3%.

Same-store fell 5% in the quarter. Store traffic was down 2%, and the average order size fell 3%.



“Our first quarter results were in line with our expectations,” said Ron Sargent, Staples’ chairman and CEO. “We grew sales in our North American delivery businesses and stabilized profitability across the company, which reflects continued progress on our strategic reinvention.”

Looking ahead,Staples said it expects to earn 11 cents to 13 cents a share in the second quarter.

Earlier this year, Staples agreed to buy Office Depot for $6.3 billion.