Staples, Inc. has released details on its performance during 2016’s fiscal first quarter, ending April 30. Total company sales for the first quarter of 2016 were $5.1 billion, a decrease of three percent compared to the first quarter of 2015, and the company reported net income of $41 million. Staples participates in the promotional products industry as distributor Staples Promotional Products (UPIC: AMER0016).
Staples’ first quarter 2016 results include pre-tax charges of $66 million primarily related to costs associated with the proposed acquisition of Office Depot and store closures, and $32 million related to the pending sale of the company’s print solutions business. Total company sales for the first quarter of 2016 decreased one percent compared to the first quarter of 2015 after excluding the impact of changes in foreign exchange rates and store closures during the past year.
“We delivered a solid first quarter and we made good progress on our critical priorities,” says Ron Sargent, Staples’ chairman and chief executive officer. “We grew sales in key categories beyond office supplies, drove growth in our mid-market contract business, and improved customer conversion in stores and online. We plan to build on our momentum as we pursue our strategic plan to enhance long-term value.”
For the second quarter of 2016, the company expects sales to decrease versus the second quarter of 2015. Staples’ earnings guidance excludes costs related to the company’s proposed acquisition of Office Depot and costs associated with the termination of the Office Depot merger agreement, as well as the impact of ongoing store closures.
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