Staples Reports a Flat Q and Guides Lower on U.S. Outlook

“The office supply retailer’s Q1 EPS was flat at 28 cents, falling 4 cents below projections, as efforts to gain market share with more sales staff and lower prices hit profits. Sales edged up 2% to $6.17 bil, also falling shy of expectations. Same-store sales slipped 1%. Staples (NASDAQ:SPLS – News) said it is having a hard time passing on price increases to contract customers who are resistant to absorbing such costs. It sees little improvement in the U.S. economy this year and cut its full-year EPS outlook to $1.35-$1.45, below views. Shares tumbled 15.4% to 16.63.”

Full report