3Q Revenue Drops At Staples

Staples today reported a 2-percent drop in revenue for its third quarter of 2012, as well as a net loss of $569 million, two months after the Framingham-based office retail supply chain announced a restructuring plan that will reduce the number of stores and place more investment in the company's online business.

Staples said revenue for the quarter was $6.4 billion, a drop of 2 percent in U.S. dollars, from $6.5 million in the third quarter of 2011. The net loss amounted to 85 cents per share, a sharp fall from the $324 million in profits (46 cents per share) that the company reported in the third quarter of last year.

Excluding restructuring charges, along with the impairment of goodwill and other assets, plus accelerated amortization and related tax charges, Staples earned $310 million, or 46 cents per diluted share, it said.
Despite the report, Staples Chairman and CEO Ron Sargent said the company is "in a much stronger position to pursue our best growth opportunities" after restructuring the organization.

Geographically, the company said sales from North American delivery operations increased 1 percent, while retail sales on the continent were flat. However, sales from international operations fell 12 percent. Staples said economic weakness in Europe drove decline in delivery businesses on the continent, while there was a 6-percent drop in same-store sales in Europe.

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