Staples Finds Growth in Sales

Staples, Inc. announced the results for its fourth quarter and fiscal year ended January 31, 2015. Total company sales for the fourth quarter of 2014 were $5.7 billion, a decrease of four percent compared to the fourth quarter of 2013. On a GAAP basis, the company reported a net loss of $260 million, or $0.41 per share, compared to net income of $212 million, or $0.33 per diluted share, achieved in the fourth quarter of 2013. Fourth quarter 2014 results on a GAAP basis include $410 million of pre-tax charges for the impairment of goodwill in the company’s Australia, China, and South America businesses, as well as $74 million of pre-tax restructuring and other charges.

Total company sales grew one percent during the fourth quarter, excluding the impact of store closures in North America during the past year and changes in foreign exchange rates. Excluding the impact of charges taken during the fourth quarter of 2014, the company reported non-GAAP net income of $198 million, or $0.31 per diluted share.

Fourth Quarter 2014 Highlights:

• Achieved North American Commercial sales growth of five percent.
• Grew sales in Staples.com eight percent in U.S. dollars, or nine percent on a local currency basis.
• Grew North American copy and print sales in the high single digits in comparable stores, and double digits in both Staples.com and Contract.
• Increased total company gross profit as a percentage of sales by 62 basis points.
• Increased International Operations business unit income by 45 percent.
• Secured more than $250 million of annualized cost savings in 2014 as part of a previously announced plan to eliminate at least $500 million of annualized costs by the end of 2015.
• Closed 169 stores in North America in 2014 as part of a previously announced plan to close at least 225 stores by the end of 2015.
• Returned $496 million to shareholders through cash dividends and share repurchases in 2014.

(Source: Staples)