Staples, Inc. (SPLS) early Thursday posted mixed fourth quarter earnings results and offered an in-line outlook for 2017, as it makes progress in its delivery business but continues to struggle on the brick-and-mortar side.
Written by StockNews.com
The Framingham, MA-based office supply retailer reported Q4 earnings per share (EPS) of $0.25, which was in-line with the Wall Street consensus estimate of $0.25.
Revenues fell 2.9% from last year to $4.56 billion, however, badly missing analysts’ view for $5.03 billion.
Staples also noted that North American Delivery comparable sales rose 1% from the prior year, helped by growth in facilities supplies, computers, and breakroom supplies. Weak spots included declines in tablets, ink and toner, and office supplies.
On the brick-and-mortar side, comparable store sales plunged 7% from last year, illustrating the continued weakness in the company’s traditional retail business.
Looking ahead, SPLS forecast Q1 EPS of $0.15 to $0.18, which is in-line with Wall Street’s consensus $0.17 estimate. For the full year 2017, Staples expects generate at least $500 million worth of free cash flow, and plans to shutter around 70 stores in North America.
The company commented on its quarterly results and ongoing business progress via press release:
“Our fourth quarter results were right in-line with our expectations, and I’m increasingly confident that we have the right plan and the right team to transform Staples and get back to sustainable sales and earnings growth,” said Shira Goodman, Staples’ Chief Executive Officer. “I am particularly proud of our ability to grow our delivery business by continuing to enhance our offering and satisfy our business customers.”
Staples shares rose $0.19 (+2.12%) to $9.15 in premarket trading Thursday. Year-to-date, SPLS had declined -0.99% prior to today’s report, versus a +5.83% rise in the benchmark S&P 500 index during the same period.
