Staples Issues Q1 Outlook; To Close Approx. 50 Stores In North America In 2016

(RTTNews) - Staples, Inc. (SPLS) announced, for the first quarter of 2016, it expects sales to decrease versus the first quarter of 2015. The company expects to achieve non-GAAP earnings per share in the range of $0.16 to $0.18 for the first quarter of 2016.

For the full year 2016, the company expects to generate approximately $600 million of free cash flow excluding the impact of payments associated with financing for the acquisition of Office Depot. The company plans to close approximately 50 stores in North America in 2016.

For the fourth quarter of 2015, the company's total sales were $5.3 billion, a decrease of seven percent compared to the fourth quarter of 2014. Total company sales declined two percent during the fourth quarter, excluding the impact of store closures in North America during the past year and changes in foreign exchange rates.

On a GAAP basis, the company reported net income of $86 million, or $0.13 per share, compared to a net loss of $260 million, or $0.41 per share, in the fourth quarter of 2014. Fourth quarter 2015 results on a GAAP basis included pre-tax charges of $172 million primarily related to restructuring and the acquisition of Office Depot. Excluding items, the company reported non-GAAP net income of $168 million, or $0.26 per share.