Staples sees strong sales growth

FRAMINGHAM, Mass. Staples today reported total company sales for its second quarter ended Aug. 4 increased 11% to $4.3 billion compared to the second quarter of 2006. Net income rose 11% year-over-year to $179 million, and earnings per share, on a diluted basis, increased 14% to 25 cents, from the 22 cents achieved in the second quarter of last year.

Total North American retail sales grew 5% in the second quarter. North American retail comparable sales decreased 2% versus 2006, reflecting lower sales in furniture, supplies, and business machines partially offset by strong sales in copy and print centers, laptop computers, ink, and software.

"We are pleased to deliver double-digit top and bottom line growth while operating in a tough retail environment in North America." said Ron Sargent, Staples' chairman and ceo. "We continue to execute well and invest in new growth ideas to achieve our sales and earnings goals."

Staples expects to achieve earnings per share growth of approximately 15% for both the third quarter and the full year. Staples anticipates low double-digit sales growth for the total company in the third quarter. Staples expects slightly negative to flat same-store sales and mid single-digit sales growth in North American retail.