Tough times at Staples too

Profits at Staples plunged 38% to $92 million, and earning per share declined 38% to 13 cents during the second quarter, as the company felt the impact of an earnings charge related to last July’s acquisition of Corporate Express.

Excluding the $30 million charge, earnings per share still declined 24% to 16 cents from the 21 cents a share the company earned in the prior year’s second quarter. Sales increased 9% to $5.5 billion.

Despite the profit decline, Staples’ chairman and CEO, Ron Sargent, remained positive and highlight the company’s financial stability and customer approval ratings.

“Staples generated record cash flow, as our team did an outstanding job managing expenses and working capital during the second quarter,” Sargent said. “We’re winning in each of our businesses by providing excellent customer service and continuing to invest in growth initiatives.”