Staples reports strong quarter

FRAMINGHAM, Mass. Staples announced that total company sales for the first quarter of 2010 increased 4% to $6.1 billion compared with the first quarter of 2009. Net income for the first quarter of 2010 increased 32% year-over-year to $189 million, and diluted earnings per share, on a GAAP basis, increased 30% to 26 cents from the 20 cents achieved in the first quarter of 2009.

“Our first quarter performance was strong across the board,” said Ron Sargent, Staples’ chairman and CEO. “With sales and profit improvement in all three of our businesses, the year is off to a good start.”

North American retail sales for the first quarter of 2010 were $2.3 billion, an increase of 6% in U.S. dollars, and 2% in local currency compared to the first quarter of 2009. First quarter 2010 comparable-store sales increased 1% versus the first quarter of 2009 reflecting increased customer traffic, partially offset by lower average order size.

North American delivery sales for the first quarter of 2010 were $2.5 billion, an increase of 2% in U.S. dollars, and flat in local currency compared with the first quarter of 2009.

International sales for the first quarter of 2010 were $1.3 billion, an increase of 6% in U.S. dollars, and a decrease of 4% in local currency compared with the first quarter of 2009.

The company said it expects to achieve diluted earnings per share, on a GAAP basis, in the range of 16 cents to 18 cents for the second 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. The company expects to achieve diluted earnings per share, on a GAAP basis, in the range of $1.20 to $1.28 for the full year 2010.