Staples has announced the results for its second quarter ended July 31, 2010 with total company sales of $5.5 billion - flat compared to the second quarter of 2009.
Net income for the second quarter of 2010 increased 40 percent year over year to $130 million. “Staples continues to deliver strong earnings growth in a challenging sales environment,” said Ron Sargent, Staples’ chairman and chief executive officer. “We’re seeing good progress in our initiatives to grow technology, copy and print, and facilities supplies.”
On a GAAP basis, second quarter 2010 operating income rate increased 112 basis points to 4.85, primarily reflecting improved product margins, lower stock based compensation expense, as well as reduced amortization and delivery and distribution expense.
International sales for the second quarter of 2010 were $1.2 billion, a decrease of six percent in US dollars and two percent in local currency compared to the second quarter of 2009. Top line growth in local currency in the European Catalog and Contract businesses was more than offset by a nine percent decrease in comparable store sales in Europe versus the second quarter of 2009.
Staples’ outlook assumes a modest economic recovery during the second half of 2010. For the third quarter of 2010, the company expects sales to increase in the low single-digits
compared to the third quarter of 2009.