Staples Q3 profit in line, sales top estimates; ups store closings

Framingham, Mass. -Staples Inc. on Wednesday reported that its third quarter net income rose 60% to $216.8, in line with Wall Street expectations, amid signs that its reinvention strategy is starting to take hold.

The retailer, which has embarked on a two-year plan to cut $500 million in annual costs, said it would shut 170 North American stores this year, which is higher than the 140 it had previously announced. To date, Staples said it has achieved over $200 million in annual cost savings.

Revenue in the quarter fell 2.5% to $5.96 billion, which topped Street forecasts.

Staples is reinventing itself as a one-stop-shop for businesses as demand for its traditional office supplies weakens.

“We’re building momentum as we reinvent Staples,” said Ron Sargent, Staples’ chairman and CEO. “During the third quarter, we accelerated growth in our delivery businesses, gained traction in categories beyond office supplies, and changed the way we work to drive cost savings.”



Staples plans to test a mini-store model, in which it will dedicate parts of its store to suppliers. The retailer said that the dedicated departments will showcase tech and furniture products, the company said during a call Wednesday with analysts.