Staples Q2 profit, sales decline

Framingham, Mass. -- Staples Inc. reported Wednesday that its net income in the second quarter declined 20% to $81.88 million, from $102.53 million in the prior year.



Its results included $101 million of pre-tax restructuring and other related charges primarily associated with its closure of 80 stores, along with its plan to close approximately 40 stores in North America during the second half. (Staples had previously announced the planned closings.)



Sales were down 2% to $5.22 billion, which topped analysts' estimates.



Same-store sales at Staples North American stores decreased 5%.



Staples.com achieved sales growth of 8%.



"We're accelerating growth in our delivery businesses as customers turn to Staples for more products beyond office supplies," said Ron Sargent, Staples' chairman and CEO. "At the same time, we have more work to do to stabilize our retail business, and we're taking action to improve customer traffic, reduce expenses and close underperforming stores."



Staples forecast third-quarter adjusted earnings of 34 cents to 39 cents a share, excluding any potential impact on per-share earnings from restructuring and related activities. The retailer plans to take a pretax charge of $40 million to $75 million in the third quarter stemming from restructuring.