Business

Staples cuts outlook after weak results abroad

US office supply retailer sees dismal sales in Europe and Australia

A Staples store in Torrance, California. The world’s largest office supplies chain cut its annual profit forecast because of declines in its retail and international business. Photograph: Bloomberg

Thu Aug 22 2013 - 01:00

Staples reported weaker- than-expected quarterly results yesterday on dismal sales in international markets such as Europe and Australia, prompting the largest US office supply retailer to cut its outlook for the year.

Lower customer traffic led to a 6 per cent decline in sales at European stores open at least a year. The company also tied some of the weakness to the closure of 49 European stores.

While Staples has done better than rivals Office Depot and OfficeMax and has higher market share in the US, the industry leader has struggled abroad due to economic weakness in Europe.

Net earnings fell to $102.5 million, or 16 cents a share, in the second quarter ended on August 3rd from $120.4 million, or 18 cents a share, a year earlier. Sales fell 2 per cent to $5.31 billion. – (Reuters)

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