Staples, Inc. has announced financial results for its first quarter, which ended April 29. Total sales for the company, which participates in the promotional products industry as distributor Staples Promotional Products (PPAI 108945), were $4.1 billion in the quarter, a five-percent decrease compared to first quarter 2016.
On a GAAP (Generally Accepted Accounting Principles) basis, Staples reported net income of $105 million in the quarter. Its first quarter 2017 results from continuing operations include pre-tax charges of $8 million, primarily related to restructuring. Total comparable sales declined three percent compared to first quarter 2016.
“2017 is off to a good start and, consistent with our strategy, we drove solid sales growth in the mid-market and improved profitability in North American retail during the first quarter,” says Shira Goodman, Staples’ CEO. “Based on our success growing categories beyond office supplies, we’re intensifying our focus on several key growth categories including facilities supplies, breakroom supplies, furniture, technology solutions, and promotional products, or what we now refer to as ‘Pro Categories.’ We’re pursuing this opportunity from a position of strength as we bring together the products, services, and expertise to provide a differentiated offering to business customers of all sizes.”
Looking ahead to the second quarter, Staples’ estimates reflect continued progress on cost savings initiatives, investments to accelerate growth in its mid-market contract business and in Pro Categories. For the full year 2017, it expects to generate at least $500 million of free cash flow and is on track to close approximately 70 stores in North America in 2017.
For more information on Staples’ first quarter, click here.