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Staples Q3 revenue misses forecasts; shares slump 3%

Published 18/11/2015, 10:50 pm
© Reuters.  Staples falls 3.1% in thin premarket trade after Q3 report
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Investing.com - The largest U.S. office supplies chain Staples Inc (O:SPLS) reported weaker than expected third quarter sales on Wednesday, sending its shares lower in pre-market trade.

Staples said earnings per share came in at $0.35 cents in the three months ended October 31, broadly in line with market expectations and down from $0.37 cents per share in the same period a year earlier.

On a GAAP basis, the company reported earnings of $0.31 cents per share, compared to $0.34 cents from the year-ago period.

Third quarter revenue totaled $5.59 billion, missing forecasts for revenue of $6.36 billion and down 6% from sales of $5.96 billion in the year-ago period.

Sales for the third quarter were $2.6 billion, a decrease of 8% compared to the third quarter of 2014. Sales growth was negatively impacted by approximately 4% due to changes in foreign exchange rates.

Comparable sales, which combines comparable store sales and Staples.com sales growth excluding the impact of changes in foreign exchange rates, decreased 2% versus the prior year.

For the fourth quarter of 2015, the company expects sales to decrease versus the fourth quarter of 2014. The company expects to achieve earnings per share in the range of $0.26 to $0.30, reflecting the unfavorable impact of the stronger U.S. dollar on sales and earnings.

Immediately following the release of the report, Staples shares lost 3.05% in pre-market trade to $12.07 from Tuesday's closing price of $12.45.

Meanwhile, the outlook for U.S. equity markets was modestly upbeat. The Dow futures pointed to a gain of 13 points, or 0.07%, at the open, the S&P 500 futures indicated a rise 2 points, or 0.07%, while the Nasdaq 100 futures increased 4 points, or 0.07%.

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