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Staples 1Q earnings up 47%
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May 18, 1999: 8:46 a.m. ET
Office retailer's revenue gains 24%; per-hare profit beats street by a penny
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NEW YORK (CNNfn) - Office retail giant Staples Inc. said Tuesday its fiscal first-quarter earnings beat Wall Street expectations, and announced two ventures to strengthen sales over the Internet.
For the three months ended May 1, Staples earnings rose 47 percent to $50.3 million, or 11 cents per diluted share, from $34.1 million, or 8 cents per share, a year earlier.
The results beat analysts' expectations by a penny, according to earnings tracker First Call Corp.
Sales rose 24 percent to $2.1 billion from $1.7 billion, reflecting the companies rapid expansion. Same-store sales at the Framingham, Mass.-based company climbed 9 percent. Staples opened 47 new stores during the quarter.
Commenting on the first-quarter results, Chairman and CEO Thomas G. Stemberg cited the company's ability to return double-digit earnings growth..
The results for Staples (SPLS) come as low unemployment, low inflation and high consumer confidence have helped most retailers see strong profits.
They also come on the same day the Federal Reserve's Open Market Committee meets to consider whether to raise interest rates to preempt inflation.
For his part, Stemberg said he hopes the Fed votes to leave rates unchanged.
"We really don't think its necessary for the Fed to take action," Stemberg told CNNfn. "If there's inflation in the economy, we really don't see it."
Separately, Staples announced two Internet partnerships designed to help it sell office supplies electronically. Staples invested $7 million in register.com, a domain name registration service, and $3.5 million in Point.com, a web retailer of wireless phones, service plans and accessories.
"These partnerships are designed to make Staples.com the one-stop e-commerce shop for small businesses," Stemberg said..
Founded 13 years ago, Staples operates 960 stores worldwide..
Staples shares, up 58 percent in the last 52 weeks, fell 5/8 to 26-1/8 Monday. 
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Staples
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