Tuesday, August 25, 2009

Staples Posts 38% Loss In Profit

. Tuesday, August 25, 2009

By stockOzone team

Staples, the retailer of office supplies, said second-quarter earnings fell 38 percent as companies bought fewer desks and chairs and profit margin narrowed.

Net income dropped to $92.4 million, or 13 cents a share, from $150.2 million, or 21 cents, a year earlier, Staples said Tuesday in a statement. Sales rose 9 percent to $5.53 billion in the 13 weeks ended Aug. 1, from $5.1 billion in the same quarter a year ago. Revenue was helped by the 2008 acquisition of Corporate Express.

Staples is adding more-profitable technical services like computer repair. Gross margin shrank to 25.7 percent from 26.6 percent.

Disclosure: Author does not own any of the stocks discussed here.

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