Staples, Inc.(NASDAQ:SPLS) has posted slightly better than expected results for the quarter thanks to declining costs and higher revenue in the North American market, although sales dipped in Europe and Australia.
Is SPLS Still A Buy Now? Find Out Here
The office supply chain incurred heavy restructuring costs as it closed several stores in North America and Europe. This charge of $840 million resulted in a net loss of $596.3 million or 89 cents a share in the third quarter. The company had made a profit of $326.4 million or 47 cents a share in the same period last year.
Revenue dropped 2 percent to $6.35 billion.
Excluding restructuring charges, the company earned a profit of 46 cents a share, one penny higher than analysts’ estimates of 45 cents. The Street had expected revenue of $6.45 billion.
The Staples stock rose 3 percent and was trading at $11.59 late afternoon.
Meanwhile, the teen clothing retailer, Abercrombie & Fitch Co.(NYSE:ANF), convincingly upped Street expectations by posting higher profits on the back of increasing demand. The company’s full year forecast is also above analysts’ calculations.
For the past quarter, the company reported a net income of $71.5 million on 87 cents a share. This is much higher than its earnings last year. The net profit had been $50.09 million which works out to 57 cents a share. This year, analysts had expected an EPS of 59 cents.
Overall revenue jumped 9 percent to $1.17 billion. Sales in the international market rose a whopping 37 percent.
Same store sales fell only 3 percent, compared to the 10 percent drop in the second quarter.
The retailer expects net income between $2.85 and $3 a share for the full year, while analysts are expecting $2.48.
The spectacular results sent the company’s shares soaring 30.50 percent to $40.69.