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Staples Reduces Its Annual Guidance

|Includes: Staples, Inc. (SPLS)

Originally published at www.seclive.com

Staples (NASDAQ:SPLS) reported net income of $102.5M for its second quarter of fiscal year 2013, coming in well under analyst projections of $120.4M. Similarly, earnings per share this quarter were $0.16 when last year they were $0.18 per share. Sales declined for the fifth time the last six quarters, dropping 2.2% to $5.3B. Staples also cut its annual earnings guidance, reducing its original forecast of between $1.30 and $1.35 earnings per share by nearly $0.10 to between $1.21 and $1.25 earnings per share. CEO Ron Sargent commented that part of the company's losses were explained due to decreased demand in printer ink and toner as more business is done only through digital means. The company was disappointed that its cost savings measures and online sales growth were neutralized by decreased international sales.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.