Staples quarterly sales flat

FRAMINGHAM, Mass. Staples announced that company sales of $5.5 billion for the second quarter of 2010 were flat compared with the second quarter of 2009. Net income for the second quarter of 2010 increased 40% year over year to $130 million, and diluted earnings per share, on a GAAP basis, increased 38% 18 cents from the 13 cents achieved in the second quarter of 2009.

“Staples continues to deliver strong earnings growth in a challenging sales environment,” said Ron Sargent, Staples’ chairman and chief executive officer. “We’re seeing good progress in our initiatives to grow technology, copy and print, and facilities supplies.”

North American retail sales for the second quarter of 2010 were $2 billion, an increase of 2% in U.S. dollars and flat in local currency compared with the second quarter of 2009, Staples said. Comparable-store sales for the second quarter of 2010 were flat versus the second quarter of 2009, reflecting increased customer traffic, offset by lower average order size.

North American delivery sales for the second quarter of 2010 were $2.4 billion, an increase of 2% in U.S. dollars and 1% in local currency compared with the second quarter of 2009, the company reported.

International sales for the second quarter of 2010 were $1.2 billion, a decrease of 6% in U.S. dollars and 2% in local currency compared with the second quarter of 2009.

For the third quarter of 2010, the company expects sales to increase in the low single-digits compared with the third quarter of 2009. The company expects to achieve diluted earnings per share, on a GAAP basis, in the range of 38 cents to 40 cents for the third quarter of 2010.

For the full year 2010, the company expects total company sales to increase in the low single-digits compared with the full year 2009. Including the impact of the higher tax rate, the company expects to achieve diluted earnings per share, on a GAAP basis, in the range of $1.20 to $1.24 for the full year 2010.