Staples, Inc. (Nasdaq: SPLS) announced today the results for its second quarter ended July 30, 2016. Total company sales for the second quarter of 2016 were $4.8 billion, a decrease of four percent compared to the second quarter of 2015. On a GAAP basis, the company reported a net loss of $766 million, or $1.18 per share. Second quarter 2016 results on a GAAP basis include pre-tax charges of $986 million primarily related to the impairment of European goodwill and other assets and costs associated with the termination of the Office Depot merger agreement.
Excluding the impact of changes in foreign exchange rates, store closures and the sale of the company’s Staples Print Solutions business total company sales for the second quarter of 2016 decreased two percent compared to the second quarter of 2015. Excluding the impact of charges taken during the second quarter of 2016, the company reported non-GAAP net income of $79 million, or $0.12 per diluted share, versus second quarter 2015 non-GAAP net income of $76 million, or $0.12 per diluted share.
“I’d like to thank the entire Staples team for remaining focused and delivering results that were right in-line with our expectations during a quarter that included the launch of a new strategic plan and a change in leadership,” said Shira Goodman, Staples’ interim Chief Executive Officer. “We are dramatically changing our mindset and operating model as we execute our 20/20 strategy and reposition Staples for sustainable long-term sales and earnings growth.”
Second Quarter 2016 Highlights
• Staples Business Advantage, the company’s North American contract business, achieved sales growth of one percent on a GAAP basis and three percent on a local currency basis after excluding a negative impact of approximately two percent due to the sale of the company’s Staples Print Solutions business during the second quarter of 2016.
• Excluding pre-tax charges of $953 million during the second quarter of 2016 and $34 million during the second quarter of 2015, the company improved operating income rate by 14 basis points on a non-GAAP basis.
• Grew operating income in North American Commercial by $8 million, or six percent, and improved operating income rate by 40 basis points versus the second quarter of 2015.
• Reduced operating losses in International Operations by $8 million, and improved operating income rate by 91 basis points versus the second quarter of 2015.
• Closed five stores during the second quarter of 2016 and 19 stores year to date in North America as part of a plan to close at least 50 stores in North America during 2016.
• Ended the second quarter of 2016 with $1.7 billion in liquidity, including $775 million in cash and cash equivalents.
more at: http://investor.staples.com/phoenix.zhtml?c=96244&p=irol-news&nyo=0