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Staples Reaffirms

It plans new stores in Denver.
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Staples

(SPLS)

reaffirmed guidance ahead of its annual analyst and investor conference.

The company said it expects per-share earnings to rise 15%-20% in the third quarter, in line with Wall Street views. The Framingham, Mass., retailer also expects to meet analyst estimates for the year.

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For both the third quarter and the full year, Staples 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. For North American Delivery, the company expects to grow revenues in the mid-teens, and in International, Staples expects revenue growth to be positive in local currency. Staples expects free cash flow generation in the range of $700 million this year.

For 2007, the company expects to report sales growth of 10%-15% and earnings growth of 15%-20%. Staples expects a positive, low single-digit comparable sales increase in North American Retail. For North American Delivery, the company expects to grow revenues in the mid-teens, and in International, Staples expects low double-digit growth in local currency.

Staples also said it has entered the Miami market with three retail stores, with plans to add an additional 20-25 stores by the end of 2007. The next new retail market entry will be Denver, launching in 2007.