Staples Barely Beats Consensus In Q1

Staples Inc. (SPLS) announced fiscal first-quarter adjusted earnings of 22 cents per share this morning, narrowly beating the consensus estimate by a penny.

The world’s largest office products company posted sales growth of 19% to $5.8 billion, primarily driven by the acquisition of Corporate Express last July.

Same-store sales fell 8% in its North American division on lower average order size, coupled with weakness in big-ticket items such as business machines and furniture.

Same-store revenue in Europe was down 14%, compared last year.

Meanwhile, the company continues to expect cost savings of up to $300 million accruing from the acquisition of Corporate Express.

The full-year consensus estimate has remained stagnant at $1.11 over the past 2 months.

SPLS, a Zacks #3 Rank (”Hold”) stock, is down about 1% today on volume of approximately 3.3 million, compared to average daily volume of about 7.5 million.

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