Staples sees 4Q retail revenue fall

FRAMINGHAM, Mass. Staples reported a 1% increase in total company sales for the fourth quarter ended Feb. 2 to $5.3 billion, which included the impact of an extra week of sales in the fourth quarter of 2006. The company reported that North American retail revenues decreased 4%. On a GAAP basis, total company net income of $333 million declined slightly from $336 million, and diluted earnings per share of 47 cents rose 2% compared to the fourth quarter of 2006.

For fiscal year 2007, sales reached $19.4 billion, a 7% increase compared to 2006. Full year North American retail sales rose 1%. On a GAAP basis, total company net income increased to $996 million versus $974 million last year, and diluted earnings per share of $1.38 rose five percent versus 2006.

“We are pleased to deliver profitable growth in what turned out to be a challenging 2007,” said Ron Sargent, Staples’ chairman and ceo. “We have a strong team dedicated to doing the right things for customers while investing in growth ideas.” 

Staples said it expects the weak economy to continue to impact its performance throughout 2008. The company said it now expects to achieve mid single-digit sales growth for 2008.