Staples Q3 profit up on lower charges, beats Street

Framingham, Mass. Staples reported Tuesday that adjusted net income surged 72% for the third quarter ended Oct. 31, to $269 million. These adjusted results exclude pre-tax integration and restructuring expense of $16 million during third quarter 2009 and $132 million during third quarter 2008, as well as a one-time tax charge of $57 million during third quarter 2008.

Sales for the quarter dropped 6% to $6.52 billion, compared with third-quarter 2008 sales of $6.95 billion. Analysts expected sales of $6.45 billion.

North American comp-store sales were flat versus third quarter 2008. Comparable-store sales in Europe decreased 9%.

During the quarter, Staples opened three stores and closed three, ending the quarter with 1,872 stores in North America. Internationally, the company closed two stores and opened one in China, and closed one store in Germany, ending the third quarter with 333 stores in Europe, 26 stores in China and two stores in Argentina.