Staples Inc reported today, September 3, that second quarter profit fell 16 percent on weakness in the US.
Following the disappointing results, the stationary retailer said it still expects low single-digit earnings growth for the full year.
In the three months ended August 2, Staples earned US$150 million, or 21 cents a share, down from US$178.8 million, or 25 cents a year earlier.
In North America, sales dropped one percent overall, while same-store sales fell seven percent. The weak US dollar helped international sales increase 17 percent.
Declines in US customer traffic and smaller average purchases were caused by the “challenging economic environment”, according to the company.
Following the acquisition of Corporate Express, Staples expects total annual synergies to increase to a range of US$200 million to US$300 million over a period of three years.