Staples reveals 210 million dollar loss over 2012/13

Staples reveals 210 million dollar loss over 2012/13

American office supplies distributor Staples has released quite disappointing results: in the fourth quarter of the financial year 2012/2013, the company had lower sales and a lower profit than expected.

Sales below expectations

In the last quarter sales rose 3% to 6.56 billion dollar (5 billion euro), well below the 6.72 billion euro (5.16 billion euro) analysts had expected. Better sales for tablets, e-readers and printers were largely nullified by lower sales in computers, digital cameras and software.

 

Sales of the fourth quarter, which was a week longer than in the past year, couldn’t save the day: global sales over the last 12 months dropped by 12% to 24.381 billion dollar (18.70 billion euro).

 

Symptomatic for entire economy

The results of Staples are seen as a kind of barometer: sales of office supplies are thought to reflect the condition of the entire economy. If that is right, companies in Europe and North-America are still feeling the pinch: in North-America comparable sales in the fourth quarter were lower by 5%, when compared to last year. In Europe the drop was even bigger, 9%.

 

The profitability of the company was also disappointing. In the fourth quarter net profits stuck at 78.1 million dollar (59.92 million euro), compared to 283.6 million dollar (220 million euro) last year. Over the entire year Staples, even goes below zero: the financial year 2012/2013 closed with a loss of 210.7 million dollar (160 million euro) - in 2011/12, there still was a profit of 984.7 million dollar (750 million euro).

 

This big recline was partially caused by a big reorganising: staples reduced its physical locations and invested more in online and mobile sales.

Questions or comments? Please feel free to contact the editors


Alibaba invests billions in physical retail

28/08/2017

Over the past two years, Chinese eCommerce giant Alibaba has spent nearly seven billion euro in physical retail. Its Hema Xiansheng chain already has thirteen supermarkets and it acquired luxury department store Intime from the government in January.

Alibaba exceeds expectations

17/08/2017

Chinese Alibaba has trumped analysts’ turnover and profit expectations with its first quarter results. Its profit even doubled compared to the year before.

Aldi will home deliver in the United States

16/08/2017

German discounter Aldi is starting one-hour deliveries for online orders in the United States, using startup Instacart. Amazon’s reaction was swift: it will test lockers in which custumers can collect items two minutes after ordering them.

Yoox-Net-a-Porter thrives thanks to mobile surge

03/08/2017

Online retailer Yoox-Net-a-Porter has managed to beat analysts’ expectations in the past fiscal year, thanks to a surge in mobile sales. For the first time ever, these sales contributed more than half of the retailer’s total turnover.

Lidl constructs new distribution center in Venlo

01/08/2017

Lidl will open a new distribution center in Venlo, which will cater its web shop’s customer base. The distribution center is not a Lidl Netherlands project, but apparently an international project.

Amazon places own pick-up lockers at consumers' homes

31/07/2017

Amazon announced The Hub, a system of pick-up lockers that can be placed everywhere. They come in different sizes and can be placed both inside or outside of buildings.

Back to top