This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Staples Profit Falls 33 Percent In 1st Quarter

ASHLEY M. HEHER

CHICAGO (AP) ¿ Recession-weary customers are still putting off big-ticket purchases from office-supply chain Staples Inc., but the retailer said it's beginning to see smaller declines in foot traffic and sales to small businesses.

The chain's tepid first-quarter results, released Wednesday, show the limping U.S. economy may finally be digging itself out of its slump by the end of the year, executives said Wednesday.

"I think the economy still looks pretty choppy out there," Chairman and Chief Executive Ron Sargent told investors during a conference call. "But I do believe that we're kind of slowly heading toward recovery mode."

Among the signs of progress during the quarter:

¿ Sales through Staples Business Delivery and Quill, which targets companies with less than 100 employees, posted low double-digit sales declines, an improvement from the fourth quarter. Staples President and Chief Operating Officer Mike Miles said that was a sign "confirming the sense we're getting at retail that the small-business segment has stabilized."

¿ Same-store sales in the U.S. ¿ a key retail industry metric of sales in stores open at least a year¿ fell 8 percent, better than the fourth quarter's 13 percent decrease. And comparable-store customer counts fell 2 percent, better than the mid-single digit declines posted at the end of the 2009 fiscal year.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CXP $27.45 0.84%
SPLS $16.25 0.37%
AAPL $130.28 0.47%
FB $81.53 -1.07%
GOOG $565.06 3.30%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs