Staples: 3rd Quarter Sales of $6 Billion, But Down 2 Percent From Last Year

Staples, Inc., announced Wednesday its third quarter sales of $6.0 billion, a decrease of two percent compared to the third quarter of 2013.

Total company sales grew during the third quarter, excluding the impact of store closures in North America during the past year, reported Staples, which has its world-wide headquarters in Framingham.

Staples said it grew sales in North American Commercial three percent in U.S. dollars

Staples has closed 127 stores in North America year to date and now expect to close approximately 170 stores in North America during 2014.

“We’re building momentum as we reinvent Staples,” said Ron Sargent, Staples’ chairman and chief executive officer in a statement “During the third quarter, we accelerated growth in our delivery businesses, gained traction in categories beyond office supplies, and changed the way we work to drive cost savings.”

Sales for the third quarter of 2014 were $2.8 billion, a decrease of 6 percent compared to the third quarter of 2013.

Sales growth was negatively impacted by approximately three percent due to store closures during the past year.

Sales declines in business machines and technology accessories, computers, and technology services, were partially offset by growth in mobility, cleaning and breakroom supplies, paper, and copy and print services.

Comparable store sales, which exclude sales in Staples.com, decreased four percent, reflecting a four percent decline in traffic and flat average order size versus the prior year.

Staples.com sales grew nine percent in U.S. dollars or 10 percent on a local currency basis during the third quarter of 2014. This reflects increased business customer acquisition and conversion, and growth from the company’s expanded assortment in categories beyond office supplies.

Operating income rate decreased 178 basis points to 7.69 percent compared to the third quarter of 2013. This decline primarily reflects investments to accelerate growth online, higher incentive compensation expense, and increased marketing expense. This was partially offset by reduced rent and labor expense as a result of store closures, and increased gross margin rate in retail stores.

For the fourth quarter of 2014, the company expects sales to decrease versus the fourth quarter of 2013.