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Staples, Inc. (SPLS)

  • Tue, Feb. 24, 7:10 AM
    • Office Depot (NASDAQ:ODP) reports sales in the retail division fell 7.2% to $1.539B in Q4 on a pro forma basis which takes into consideration the OfficeMax merger.
    • The pro forma same-store sales comp was -2%.
    • Retail operating margin +240 bps to 1.0%.
    • North American Business Solutions Division sales -1% on a pro forma basis to $1.46B. Operating margin +300 bps to 4.5%.
    • International sales -4% to $834M. Operating margin +40 bps to 3.5%.
    • Due to the merger with Staples (NASDAQ:SPLS), guidance is withdrawn by the company, although it did say it expects total company sales to be lower in 2015.
    • Merger synergy benefits of $750M per year are forecast.
    • ODP +1.80% premarket.
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  • Fri, Feb. 13, 11:13 AM
    • Office Depot (NASDAQ:ODP) trades at $9.59 to mark a 12.8% discount to the deal price it struck with Staples (NASDAQ:SPLS).
    • The lackluster response of shares is due in part to apprehension the FTC will get in the way of the combination.
    • Retail Dive notes Staples can walk away from the deal if regulators require too many stores to be divested.
    • Staples is down 10.7% since the acquisition was announced from an initial pre-announcement pop.
  • Wed, Feb. 11, 9:19 AM
    • President Obama took a shot at Staples (NASDAQ:SPLS) in an interview with Buzzfeed.
    • The company drew the ire of POTUS for cutting wages and taking measures to skirt around the provisions of the Affordable Care Act.
    • A leaked memo issued by a Staples manager indicates the company has adopted a policy of limiting part time associates to no more than 25 hours a week.
    • There are other reports of Staples employees being threatened with termination if they exceeded the hourly cap.
    • Former Presidential candidate Mitt Romney served on the board at Staples for over a decade.
  • Thu, Feb. 5, 10:14 AM
    • Janney Capital thinks Staples (NASDAQ:SPLS) was a little conservative when it estimated $1.6B in deal synergies from a merger with Office Depot (NASDAQ:ODP).
    • The investment firm sees fair value on Staples at $22.
    • Other analysis on the deal isn't quite so optimistic.
    • Staples will inherit another 2K stores that collectively haven't put up a positive comp since 2007, notes Harvard professor Rajiv Lal.
    • Another breakdown: SA contributor Dallas Salazar
    • Previously: Staples acquires Office Depot for $6.3B (Feb. 04 2015)
    • Shares of Staples are up 0.84% to $16.91 today. Office Depot (ODP) is hanging steady at $9.47 vs. the implied deal price of $11.
    | 1 Comment
  • Wed, Feb. 4, 9:13 AM
  • Wed, Feb. 4, 7:43 AM
    • Shares of Office Depot (NASDAQ:ODP) move higher in early trading after coming off of a trading halt.
    • Some investors appear to be cautious on concerns the merger will face a major regulatory roadblock.
    • ODP +7.2% to $9.95 premarket vs. $11.00 Staples (NASDAQ:SPLS) offer ($7.25 in cash + 0.2188 shares of SPLS).
    • SPLS -2.26% to $18.58.
    • Previously: Staples acquires Office Depot for $6.3B
  • Wed, Feb. 4, 7:09 AM
    • Staples (NASDAQ:SPLS) announces it will acquire Office Depot (NASDAQ:ODP) for $6.3B.
    • The transaction values Office Depot at $11.00 per share vs. yesterday's closing price of $9.28.
    • The company expects to generate at least $1B in annualized cost synergies.
    • A closing before the end of the year is anticipated after a regulatory review is completed.
    • Shares of ODP are currently halted.
  • Tue, Feb. 3, 12:17 PM
    • Retail space continues to open up as more companies look to trim their store counts or reposition themselves in front of mergers or bankruptcies.
    • In some cases, the transition is based on repositioning assets to online fulfillment centers.
    • A quick scan indicates Sears Holdings (NASDAQ:SHLD), J.C. Penney (NYSE:JCP), RadioShack (NYSE:RSH), Dollar Tree (NASDAQ:DLTR), Wet Seal (NASDAQ:WTSL), Macy's (NYSE:M), Haverty Furniture (NYSE:HVT), Bon-Ton Stores (NASDAQ:BONT), Aeropostale (NYSE:ARO), Rent-A-Center (NASDAQ:RCII), and Wolverine Worldwide (NYSE:WWW) are unloading properties.
    • Analysts have warned the flooded market could lead to some disappointing transaction prices or lease rates for the companies involved.
    • What to watch: A merger between Staples (NASDAQ:SPLS) and Office Depot (NASDAQ:ODP) or a major retooling from Best Buy (NYSE:BBY) this year could add to the tally.
  • Tue, Feb. 3, 10:09 AM
    • Shares of Office Depot (NASDAQ:ODP) are up 19.7% and Staples (NASDAQ:SPLS) has run up an 11% gain as investors discount any concerns that regulators will get in the way of an office supply store mega-merger.
    • Retail analysts think significant cost savings could be derived from a merger as the combined store count of the chains is reduced.
    • Staples has over 3.8K stores, while the Office Depot/OfficeMax count is over 2K.
    • Previously: Staples, Office Depot in advanced talks to combine
    | Comment!
  • Tue, Feb. 3, 2:03 AM
    • Facing pressure from activist investor Starboard Value, WSJ reports that Staples (NASDAQ:SPLS) and Office Depot (NASDAQ:ODP) are in advanced talks to merge.
    • Regulators nixed Staples' attempt to buy Office Depot in 1997, but the FTC approved Office Depot's $976M acquisition of OfficeMax in 2013 without the need to close any stores.
    • The price and structure of the proposed deal couldn’t be learned.
    • SPLS +5.2%; ODP +13% premarket
  • Tue, Jan. 20, 1:28 PM
    | Comment!
  • Tue, Jan. 20, 10:11 AM
  • Tue, Jan. 20, 9:15 AM
    • Staples (NASDAQ:SPLS) is under pressure from Starboard Value to explore a sale or merger with Office Depot (NASDAQ:ODP), according to Bloomberg.
    • SPLS +2.3% premarket and ODP +1.1%.
    | Comment!
  • Thu, Jan. 15, 11:28 AM
    • Staples (SPLS -2.1%) adds Google sales exec Paul-Henri Ferrand to its board.
    • CEO Ron Sargent says he won't take his 2.5% salary raise that's called for in his severance agreement.
    • The company also indicates the board will appoint an independent chairman after the current chairman retires.
    | Comment!
  • Thu, Jan. 15, 10:33 AM
    • Target's exit from Canada has retail analysts re-evaluating the plans of a number of chains with operations in the region.
    • The list below includes companies just entering Canada with a light store count and some well-established chains which have already been trimming.
    • Specialty: Chico's FAS (NYSE:CHS), DSW (NYSE:DSW), Hennes & Mauritz (OTCPK:HMRZF), Jimmy Choo, TJX Companies (NYSE:TJX), Moncler, Aeropostale (NYSE:ARO), Versace, Nordstrom.
    • Big-box: Best Buy (NYSE:BBY), Wal-Mart (NYSE:WMT), Staples (NASDAQ:SPLS), Sears Canada (NASDAQ:SHLD).
    • Previously: Nervous feet for Nordstrom over Canada? (Jan. 15 2015)
    • Previously: Full exit from Canada for Target (Jan. 15 2015)
  • Sat, Jan. 3, 7:51 PM
    • The intense competition in retail over free shipping policies is expected to bring some pain to Q4 margins as big box and e-commerce firms scrap for market share, warn analysts.
    • ComScore reports that free delivery on online purchases rose to 68% in 2014, up from 44% last year.
    • Amazon (NASDAQ:AMZN): 2014 shipping costs were up 32% through Q3. That mark comes before a holiday season in which the company says it saved customers a mere $2B in shipping fees.
    • Wal-Mart (NYSE:WMT): The Bentonville giant has already warned investors it will spend heavily on e-commerce and fulfillment center expansion as it eyes +30% growth in online sales. The company may have difficulty dialing back its free delivery policies, say industry insiders.
    • Target (NYSE:TGT): Wolfe Research projects a 1% shift in Target sales to e-commerce cuts into the firm's profit margin by 5 bps.
    • What to watch: Online sales rose 16% in Q3 vs. 4% for broad retail, a differential that is expected to have widened in Q4. Retailers with a sharp shift in mix to online could have trouble hitting consensus EPS estimates.
    • Related stocks: BBY, DKS, CAB, SPLS, TJX, BIG.
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Company Description
Staples Inc operates as an office products company that sells and delivers office products and services. The Company provides products, services and expertise in the categories of office supplies, technology, furniture, Copy & Print & among ohers.