Staples Inc, the biggest US speciality retailer of office supplies, reported lower quarterly profit on November 27, hurt by a charge related to a class-action settlement and lower same-store sales in its US stores.
Third-quarter net income was $274.5 million, or 38 cents per share, compared with $289.9 million, or 39 cents per share, a year earlier.
The office supply sector has seen a slowdown in recent quarters as job growth has slowed and the weak US housing sector and credit market jitters have led small businesses to cut spending. This has especially cut into demand for big-ticket items like office furniture.
Sales in the quarter ended November 3 rose 9 percent to $5.17 billion from $4.76 billion a year earlier. North American retail sales rose 3 percent, but sales at stores open at least a year fell 3 percent, as sales of business machines, furniture and computers slowed.
The company said it expects to achieve earnings per share growth of about 15 percent for the fourth quarter and the full year, excluding items. For the fourth quarter, the company anticipates low-double-digit sales growth, flat to slightly lower same-store sales and high-single-digit sales growth in the North American retail segment.
For next year, Staples said it expects low-teens earnings per share growth excluding items and high-single-digit sales growth. For North American retail it expects same-store sales to grow at a low-single-digit rate.