Staples 3Q earnings rise
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November 16, 1999: 7:41 a.m. ET
Attributes stronger retail, delivery sales for 34% increase in profit
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NEW YORK (CNNfn) - Office supply retailer Staples Inc. Tuesday reported a 34 percent rise in its third-quarter earnings, a penny more than analysts' expectations, reflecting an improved performance by its retail stores and delivery business.
Net income for the quarter ended Oct. 30 rose to $92.5 million, or 20 cents per diluted share, from $69.2 million, or 15 cents in the year-earlier period. Analysts polled by research firm First Call Corp. had anticipated earnings of 19 cents a share.
Revenue rose 26 percent to $2.4 billion from $1.9 billion. Sales at stores open a year or more rose 9 percent worldwide and 10 percent in North America.
The latest quarter includes a $2.84 million loss from its Staples.com unit, compared with a $99,000 loss in the year-earlier period. But company officials are still pleased by the progress made online.
"Our Internet business has surpassed our own expectations this quarter and we are on our way to becoming the online destination for small business -- the place where business does business," said Staples Chief Executive Thomas G. Stemberg.
On Nov. 9, Staples shareholders approved the company's plans to create a separate Staples.com stock to reflect the performance of the company's e-commerce businesses. Staples.com stock reflects the operations of the company's three different e-commerce sites -- www.staples.com, www.quillcorp.com and www.stapleslink.com.
That division recorded revenue of approximately $24 million for the third quarter, up nearly sixfold from the roughly $4 million it reported during the same period a year earlier.
For the first nine months, Staples earned $195.6 million, or 42 cents a diluted share, compared to $114.1 million, or 27 cents, a year earlier. Sales rose to $6.3 billion from $5.1 billion.
Framingham, Mass.-based Staples (SPLS) is one of the leading office products distributors, with more than 900 retail stores in the United States, Canada, Britain and Germany. Its shares rose 2-13/16 to 24-3/4 Monday.
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