Staples Closing 70 More Stores in 2017

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Staples, Inc. (NASDAQ:SPLS) has announced that it will be closing 70 stores in 2017.

Staples Closing 70 More Stores in 2017

The Staples closing stores announcement was made during the office supply company’s earnings report for the fourth quarter of 2016. The company says that the 70 stores that will be closing this year will all be located in North America.

The announcement of Staples stores closing in 2017 doesn’t include details on which stores will be affected. The decision to close SPLS stores comes as the company faces a decline in retail store sales. This includes a roughly 7% decrease in retails sales for 2016 when compared to the year prior. The company’s comparable stores sales for 2016 were also down 5% from 2015.

The new round of Staples closing its stores comes after other store closures in 2016. The company closed 48 of its stores during the year. It now has 1,255 stores left in the United States and 304 in Canada.

The Staples closing stores announcement wasn’t the only data for 2017 that the company revealed in its recent earnings report. It also notes that it expects to see earnings per share for the first quarter of 2017 range from 15 cents to 18 cents. Wall Street is expecting the company to report earnings per share of 17 cents for this quarter.

The Staples closing plans weren’t the only bad news the company had in its earnings report for the fourth quarter of the year. It also reported earnings per share of 25 cents per share for the quarter. This is below its earnings per share of 26 cents from the same time last year. It also came in one penny below analysts’ estimates.

Revenue reported by Staples, Inc. in the fourth quarter of 2016 was $4.56 billion. The company’s revenue from the same period of the year prior was $4.70 billion. Wall Street was expecting revenue of $5.04 billion for the quarter.

SPLS stock was down 4% as of Thursday morning.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/staples-closing-spls/.

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