Company officials said the slow sales growth was a result of a decline in technology, furniture and business software purchases.Strong growth trends in the company's delivery and internet service helped offset those sluggish sales trends, however.
North American delivery rose 17 % to $1.4 billion in the first quarter compared to $1.2 billion for the same period last year, while online delivery sales rose 71%, an increase from last year's 65% growth, the company said.During the quarter, the world's largest office supply retailer reported that net income for the period ending April 29 rose to $186.1 million, or 25 cents per share from $147.7 million, or 20 cents per share, in the year ago quarter.
Overall sales also increased 9% to $4.24 billion from $3.9 billion last year but sales at stores open at least a year were up just 1%. International sales also grew by 6% , the company said.
Staples, which operates 1,786 stores worldwide, said it also plans a major expansion effort that will increase its presence by the end of the year by 100 new stores. During the first quarter, the firm opened two new stores in the United States and three in Canada. The company said it also expects to expand its presence in supermarkets, where it currently has 1,000 locations.
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