Office supplies retailer Staples has announced that it expects its full year earnings to be flat following disappointing financial results for its second quarter released today.
Reporting a three per cent drop in total sales, the US-based retailer said that sales stood at $5.5 billion (£3.5 billion) for the second quarter ended July 28th 2012.
Sales in its international operations fell ten per cent on a local currency basis to $1.1 billion, reflecting weak sales in Europe and Australia, while like-for-like (LFL) sales across its European stores decreased by nine per cent over the period.
North American retail sales decreased three per cent compared to the same period in 2011 as LFL’s dropped two per cent and the company acknowledged that these results are weaker than expected, adding that it is “adopting a more conservative sales and earnings outlook.”
“We’re taking a hard look at each of our businesses, and we plan to make significant changes to improve results,” Staples Chairman and CEO Ron Sargent said.
“We’re also building a plan to reallocate resources, take advantage of our best growth opportunities, and drive increased cost savings.”