Staples Reports Higher Fiscal Year, Q4 Sales

-- TWICE, 3/4/2008 7:58:00 AM

Framingham, Mass. — Staples reported higher sales for its fiscal year and fourth quarter, which ended Feb. 2.

Including the impact of an extra week of sales in the fourth quarter of 2006, total company sales grew 1 percent to $5.3 billion. 

North American retail revenues decreased 4 percent, and North American delivery sales increased 4 percent.

On a GAAP basis, total company net income of $333 million declined slightly from $336 million, compared with the fourth quarter of 2006. Excluding $370 million of sales recorded during the 14th week in the fourth quarter of 2006, total company sales for the fourth quarter increased 8 percent to $5.3 billion compared with the same quarter of 2006.

Excluding North American retail sales of $209 million and North American delivery sales of $130 million recorded during the extra week in the fourth quarter of 2006, North American retail sales increased 4 percent and North American delivery sales increased 12 percent.

Comp-store sales for the fourth quarter decreased 6 percent in North American retail.

For fiscal year 2007, sales reached $19.4 billion, a 7 percent increase compared to 2006 and a new company record. Full-year North American retail sales rose 1 percent and North American Delivery revenues increased 12 percent.

On a GAAP basis, total company net income increased to $996 million vs. $974 million last year, and rose 5 percent vs. 2006.

Excluding the 53rd week of sales in 2006, total company sales increased 9 percent vs. last year, North American retail sales increased three percent, and North American delivery revenues increased 14 percent.

“We are pleased to deliver profitable growth in what turned out to be a challenging 2007,” said Ron Sargent, Staples’ chairman/CEO. “We have a strong team dedicated to doing the right things for customers while investing in growth ideas.”

Staples opened 159 stores worldwide, operating 2,038 stores at the end of the fiscal year.