Staples profits, sales still on the decline

Staples says its reinvention is on track despite a disappointing financial performance in the third quarter.



For the third quarter ended Oct. 31, Staples reported a profit of $198 million. Same-store sales decreased 2%. On a per-share basis, the Framingham, Massachusetts-based company said it had profit of 31 cents. Earnings, adjusted for non-recurring costs, came to 35 cents per share. The results matched Wall Street expectations. Revenue was $5.59 billion, which fell short of Street forecasts.



"We're driving solid sales and earnings growth in our North American Commercial business, and stabilizing results in North American Stores and Online," said Ron Sargent, Staples' chairman and CEO. "Our strategic reinvention is on track, and we look forward to accelerating the transformation of Staples with the acquisition of Office Depot."



For fourth quarter 2015, the company expects sales to decrease versus fourth quarter 2014. The company expects to achieve fully diluted non-GAAP earnings per share in the range of 26 cents to 30 cents for fourth quarter 2015. The company's guidance reflects the unfavorable impact of the stronger U.S. dollar on sales and earnings.



Staples Inc. is trying to buy rival Office Depot for $6.3 billion. The Federal Trade Commission is reviewing the deal and will make a decision on it by Dec. 8.