Staples, Inc., parent company of distributor Staples Promotional Products (PPAI 108945), has released its financial performance for the fourth quarter and fiscal year that ended January 28, 2017.
The company’s total sales for the fourth quarter of 2016 were $4.6 billion, a decrease of three percent compared to the fourth quarter of 2015, and it reported a net loss from continuing operations of $615 million. Continuing operations impacting the fourth quarter’s results include pre-tax charges of $791 million primarily related to goodwill impairment, restructuring costs and the impairment of long-lived assets. Its comparable sales for the quarter were down only one percent compared to fourth quarter 2015, and excluding the impact of charges taken during the period, Staples reported net income from continuing operations of $161 million.
“Our fourth-quarter results were right in line with our expectations, and I’m increasingly confident that we have the right plan and the right team to transform Staples and get back to sustainable sales and earnings growth,” says Shira Goodman, Staples’ chief executive officer. “I am particularly proud of our ability to grow our delivery business by continuing to enhance our offering and satisfy our business customers.”
For the full year 2016, total company sales decreased three percent to $18.2 billion compared to 2015, and total company comparable sales declined one percent versus the prior year. Staples reported a net loss from continuing operations of $459 million, compared to net income of $462 million in 2015. Its net income from continuing operations in 2016 was $586 million.
Looking ahead to full year 2017, Staples expects to generate at least $500 million of free cash flow, and close approximately 70 stores in North America in 2017.
