Growth in sales of tablets, laptops, e-readers and copy...
Growth in sales of tablets, laptops, e-readers and copy and print business offset softness in desktop PCs, computer media, software and computer accessories in Staples’ third quarter, company executives said in the earnings call Tuesday. Sales in North America were…
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flat at $2.7 billion, and same-store sales were down 1 percent in the U.S., the company said. International sales were down two percent in dollars and seven percent in local currencies, the company said, with softness in international markets driven by weak sales. Despite economic reports and high unemployment, the North American “consumer has held up a lot better than small business,” said CEO Ron Sargent, saying business accounts for 80 percent of Staples’ sales. Consumer spending is “about where it was when the recession began,” Sargent said. Staples closed three stores and opened four in Q3 and is on track to open 20 new stores net in 2011 to bring the total of North American stores to 1,908, Sargent said. The chain will continue to focus on growth areas, including mobile phones, he said. The chain added 375 mobile phone departments in the quarter to bring the total to 450 and it expects to add 50 more by year-end, he said. Technology and copy and print “are getting to the point where critical mass will hopefully deliver sales growth to carry the whole company,” said CFO John Mahoney. The company said its Canadian stores are selling the iPad, a practice which executives hope will extend to U.S. stores in the future. For the quarter, sales inched up 0.5 percent to $6.6 billion, while earnings per share grew 15 percent to 47 cents for the period, the company said. For Q4, Staples is forecasting flat to low single-digit sales growth compared with last year. Staples’ stock closed down 3.6 percent Tuesday to close at $14.81.