Staples Q2 profit tumbles 32% on weak North American sales
Framingham, Mass. -- Staples reported Wednesday that profit for the quarter ended July 28 plummeted 32% to $120.4 million from $176.4 million, prompting the office supply retailer to cut its full-year guidance.
Soft sales and slowed traffic in North America sent total revenue downward 6% to $5.5 billion; North American retail sales slipped 3%. Same-store sales declined 2%. Sales abroad fell 18%.
“We’re taking a hard look at each of our businesses, and we plan to make significant changes to improve results,” said Ron Sargent, chairman and CEO. “We’re also building a plan to reallocate resources, take advantage of our best growth opportunities, and drive increased cost savings.”