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Weak trends continue at Staples, shares -7.5%

  • Staples (SPLS) reports comparable store sales fell 7% in Q4 on a sharp drop in traffic and slightly lower average order size from customers.
  • A reduction in store count and tighter product margin rates cut into Staple's profitability.
  • The company did see double-digit revenue growth for Staples.com.
  • Guidance for Q1 EPS is set at $0.17-$0.22 vs. $0.27 consensus.
  • Staples says it will close 225 in North America by the end of 2015.
  • SPLS -7.5% premarket
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Comments (12)
  • quabbin
    , contributor
    Comments (127) | Send Message
     
    I would really like to believe in this recovery but news like this bums me out.
    Cosco seems to be in a funk also.
    Perhaps spring will lure the consumers out.
    6 Mar, 07:26 AM Reply Like
  • june1234
    , contributor
    Comments (2641) | Send Message
     
    AMZN continues to grow at radio shack's, best buy, blood bath and beyond, JCP, Sears expense. Does anyone remember Circuit city, Compusa or Woodward & lothrop all located in the big box retailer museum
    6 Mar, 07:54 AM Reply Like
  • U2A Ventures
    , contributor
    Comments (183) | Send Message
     
    Radio Shack is really mimicking Circuit. I was an employee of Circuit City many years ago during my college years and I sort of had an affinity to the company even after I left. I kept a close a eye as I moved on to grad school and other career paths since and watched it until the day my local store officially closed for good. $RSH is going down the same road.
    6 Mar, 08:06 AM Reply Like
  • chopchop0
    , contributor
    Comments (3523) | Send Message
     
    It's easy to grow your business when you're not interested in your bottom line/making a profit.
    6 Mar, 09:08 AM Reply Like
  • mobyss
    , contributor
    Comments (2040) | Send Message
     
    The question is, when Amazon finally tries to become profitable (by raising prices of course), will it be too late? For now Amazon is pretty dominant, but what if Walmart really comes after them online and uses the profitability of its physical stores to undercut Amazon at every turn? What if Walmart buys ebay? An online price war would be harder on Amazon than it would be on Walmart.
    6 Mar, 11:50 AM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (765) | Send Message
     
    After backing out 53rd week and impact of currency comps were -4%, not -7%. Still pretty weak either way, but worth noting...
    6 Mar, 09:39 AM Reply Like
  • michaelfb68
    , contributor
    Comments (12) | Send Message
     
    Staples is not a consumer business these days and they exist on B2B sales. Lower overhead by dumping bricks and mortar locations is smart and allows them to better focus on what they do best.
    6 Mar, 09:57 AM Reply Like
  • AContrarian
    , contributor
    Comments (144) | Send Message
     
    Michael - you nailed it. Thinking of initiating this morning.
    6 Mar, 10:02 AM Reply Like
  • imd85
    , contributor
    Comments (42) | Send Message
     
    and nice dividend increase for new positions...
    6 Mar, 11:02 AM Reply Like
  • theo_rhetoric
    , contributor
    Comments (166) | Send Message
     
    Bring back Mitt!
    6 Mar, 11:05 AM Reply Like
  • jlg5385
    , contributor
    Comments (34) | Send Message
     
    Romney is responsible for this fiasco. He personally stole all their pensions and health care. Romney the pilferer. i bet you wont hear a sound from him.
    6 Mar, 12:15 PM Reply Like
  • imd85
    , contributor
    Comments (42) | Send Message
     
    I guess he screwed ODP while he was at....
    6 Mar, 12:30 PM Reply Like
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