May 22, 2007
Earnings up, forecast mild for Staples
By Matthew L. Brown
Framingham-based office supply retailer Staples Inc.'s first quarter profit income increased 12 percent compared to the first quarter a year ago.
The $209 million in net income the company reported was made on gross profit of $1.28 billion. The company reported gross profit of $1.18 billion for the first quarter of 2006.
Staples said it would take a cautious approach to its earnings forecast for the remainder of the year because of a "softer-than-expected sales environment in our North American retail business during the first quarter."
The company said it still expects 15 to 20 percent growth for the year, but said it expects results at the lower end of that range.
Staples also announced that it acquired Overland Park, Kan.-based American Identity, a distributor of corporate-branded merchandise, from Republic Financial Corp. Financial terms of the deal have not yet been disclosed.
American Identity has about 1,000 employees, and will remain a separate business under Staples.
The $209 million in net income the company reported was made on gross profit of $1.28 billion. The company reported gross profit of $1.18 billion for the first quarter of 2006.
Staples said it would take a cautious approach to its earnings forecast for the remainder of the year because of a "softer-than-expected sales environment in our North American retail business during the first quarter."
The company said it still expects 15 to 20 percent growth for the year, but said it expects results at the lower end of that range.
Staples also announced that it acquired Overland Park, Kan.-based American Identity, a distributor of corporate-branded merchandise, from Republic Financial Corp. Financial terms of the deal have not yet been disclosed.
American Identity has about 1,000 employees, and will remain a separate business under Staples.
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