Staples Profits Rise 15%

Net income was up to $290 million, or 39 cents per share, during the November to January period compared to fourth-quarter earnings of $251.3 million, or 33 cents per share a year earlier. The results beat analysts' expectations of 38 cents per share for the quarter and sent the company's shares up more than 6% Tuesday to a 52-week high.

Sales at the world's largest office product supplier also rose to $4.46 billion for the period, up from $4.08 billion a year earlier, while same store sales for the quarter increased 3%. For fiscal year 2005, sales reached $16.1 billion, an 11 % increase compared to 2004, company execs said.

"Our 69,000 associates delivered great results in 2005," said Ron Sargent, Staples' chairman and CEO. "Not only did the team achieve our financial objectives for the year, but we also made solid progress on several initiatives to sustain our long-term growth."

The Framingham, MA-based firm, which operates 1,780 office superstores in 21 countries throughout North and South America, Europe and Asia, said North American retail revenue was up 8% and delivery sales increased 18% while International sales grew 9% in local currency but were flat in US dollars. Worldwide e-commerce sales were also strong, reaching $3.8 billion for the year, a 27% increase from 2004, execs said.

Among the firm's strongest performers was its own branded merchandise, which has grown to hundreds of items. That branded merchandise made up 18% of total sales at Staples stores last year, company officials said.

Staples, which opened 75 stores in the US and 24 in Canada during 2005, plans to open 10 new European stores in fiscal 2006 and plans a further expansion of its operations in the United States.