“(Reuters) – Staples Inc , the largest U.S. office supply chain, reported a slightly better than expectedquarterly profit, as costs declined and sales in North America held up, although weakness in Europe and Australia hit overall revenue.
Staples shares were up 4 percent at $11.70 in premarket trade. They had fallen by about a 20 percent this year.
Staples’ third-quarter adjusted profit beat estimates by 1 cent per share, although restructuring coststook it to a net loss.
Office supply chains are a good gauge of economic health because demand for their products is closely tied to white-collar employment rates.
Sales at Staples have suffered as corporate customers and other shoppers cut back on discretionary spending in the weak global economy, forcing the chain to keep a tight lid on costs.
But in the latest quarter, Staples reported North American delivery sales rose 1 percent even as retail sales remained flat.”
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