Staples Q3 net income up 29 percent
November 2006 — Framingham (MA): Staples has announced strong results for its Q3 period.
The
company drove strong performance in each of its three businesses and
gained market share, as expected by analysts at Citigroup.Total company
Q3 sales increased 12 percent to $4.8 billion compared to the $4.2
billion reported during Q3 2005.Net income rose 29 percent
year-over-year to $290 million, and EPS, on a diluted basis, increased
30 percent to $0.39, from the $0.30 achieved during Q3 last
year.According to the retailer: “Q3 2006 earnings results reflect a
lower tax rate, due to the favourable resolution of certain tax
matters, and a correction for prior years’ stock-based
compensation.”Excluding these items, net income grew 18 percent to $265
million and earnings per share, on a diluted basis, were $0.36, a 20
percent increase versus Q3 2005.Q3 North American Retail same-store
sales increased four percent versus 2005, attributed to a strong
back-to-school season and higher average order sizes.Total North
American Retail sales rose 9 percent and North American Delivery grew
sales 16 percent versus last year.International sales rose 10 percent
in local currency and 15 percent in US dollars, with five percent
comparable store sales growth in European Retail.Chairman and CEO Ron
Sargent said: “While we continue to improve margins, we’re focused on
driving profitable growth, and we’re pleased to see top line momentum
in every part of our business.”For the full year, the company expects
to exceed its previously announced earnings guidance of 15 to 20
percent growth, excluding the Q3 tax benefit and the correction for
prior years’ stock-based compensation.The retailer expects low
double-digit growth for the total company on the top line and a
positive, low single-digit comparable sales increase in North American
Retail.
Staples Inc.’s Q3 Sees Sales Jump
Staples
Inc.’s third-quarter sales rose from $4.25 billion the Q3 05 to $4.76
billion.Net income jumped from $224.5 million last year to $289.9
million for the quarter ended Oct. 28, writes Direct Magazine.The North
American Delivery operating group, which includes DM operations, jumped
from $1.26 billion to $1.5 billion in sales, while income for that
group rose from $133.8 million to $161.5 million. That increase was
despite the costs associated with opening three new fulfillment
centers.