Staples rings up 19% profit gain

Office supply retailer's second-quarter results spearheaded by gains in North American market share.
NEW YORK (Reuters) -- Staples Inc., the No. 1 specialty office supplies retailer, said Tuesday that quarterly profit rose 19 percent, driven by market share gains in North America and improvements in its international operations.
Net income for the second quarter ended July 29 rose to $161.2 million, or 22 cents per share, from $135.2 million, or 18 cents, a year earlier.

The results matched the average outlook of analysts polled by Reuters Estimates.
Total sales rose 12 percent to $3.88 billion from $3.47 billion, modestly exceeding analysts' average forecast of $3.81 billion.
Sales at North American retail stores open at least a year rose 4 percent, helped by strong sales of its mobile computing products, core office supplies, ink and toner products and copy and print services. Staples (Charts) said there was also improved performance in its office furniture category, which had experienced a slowdown in recent quarters.
The company, which is trying to expand margins with private-label products, said it is on track to reach its goal of 20 percent of sales from Staples-brand products.
Staples said it expected low double-digit percentage sales growth for the third quarter and earnings-per-share growth of 15 to 20 percent, which it says is in line with analysts' estimates.
The company, based in Framingham, Mass., also affirmed its full-year outlook for earnings per share growth at the high end of the 15-20 percent range.
Analysts, on average, were expecting earnings of 35 cents per share for the third quarter and $1.26 for the year.
Staples shares, whose current price is roughly 18.7 times earnings estimates for the current fiscal year, trade at a discount to rivals Office Depot Inc., which trades at 19.6 times the current year's estimates, and OfficeMax Inc., which trades at 22.2 times.
As of Monday's close, Staples shares had fallen 15 percent since May 11, when they reached a 52-week high of $27.71.