Staples warns on earnings

Staples Inc. warned today that its second-quarter results, excluding its acquisition of Corporate Express, would be weaker than anticipated.

The Framingham, Mass.-based office supply company said revenue rose about 3 percent and earnings per share fell about 15 percent in the quarter compared to a year ago. At the end of the first quarter, Staples executives predicted that earnings per share would be flat in the second quarter.

Analysts polled by Thomson Reuters expected earnings per share of 25 cents and revenue of $4.49 billion, on average. That profit estimate assumes flat growth over last year's second quarter.

Staples said North American sales fell 1 percent while comparable store sales fell about 7 percent over 2007, due to lower customer traffic and smaller orders. International sales rose 17 percent, with a big boost from a weak dollar, and rose 6 percent when measured in local currency.

Staples will report final results on Sept. 3 for the quarter ended Aug. 2. Those results will include Corporate Express results for July, when Staples completed its acquisition of the Dutch office supply company.

Excluding Corporate Express, Staples said it expected low single-digit sales growth and flat earnings per share for 2008. (AP)