Staples, Inc. Announces Fourth Quarter and Full Year 2015 Performance

Staples, Inc. announced the results for its fourth quarter and fiscal year ended January 30, 2016. Total company sales for the fourth quarter of 2015 were $5.3 billion, a decrease of seven percent compared to the fourth quarter of 2014. On a GAAP basis, the company reported net income of $86 million, or $0.13 per diluted share, compared to a net loss of $260 million, or $0.41 per share, in the fourth quarter of 2014. Fourth quarter 2015 results on a GAAP basis include pre-tax charges of $172 million primarily related to restructuring and the acquisition of Office Depot.

Total company sales declined two 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 2015, as well as certain tax items, the company reported non-GAAP net income of $168 million, or $0.26 per diluted share.

Fourth Quarter 2015 Highlights

• Improved operating margin rate in North American Commercial and North American Stores and Online versus Q4 2014.
• Grew sales in Staples.com one percent in local currency and improved operating margin rate versus Q4 2014.
• Grew copy and print sales in North American Stores and Online versus Q4 2014.
• Total company non-GAAP operating income rate of 5.1 percent unchanged versus Q4 2014.
• Eliminated approximately $550 million of annualized costs in 2014 and 2015 combined.
• Closed 12 stores in Q4 and 73 stores for the full year 2015 in North America for a total of 242 store closures in 2014 and 2015 combined.
• Returned $308 million to shareholders through cash dividends in 2015.
• Extended Office Depot merger agreement and financing arrangements in early 2016 to allow for the completion of ongoing federal court litigation with the Federal Trade Commission.
• In early 2016, the European Commission announced its approval of Staples’ acquisition of Office Depot subject to certain divestiture requirements.

In early 2016, the company entered into an agreement with Essendant to divest more than $550 million of office products revenue and related assets subject to the successful completion of the acquisition of Office Depot.

(Source: Staples)