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Staples’ quarterly net income slides 15%

Nick Cannon promoted back-to-school sales at a New York store in July.

Staples Inc.

Nick Cannon promoted back-to-school sales at a New York store in July.

Staples Inc., the world’s largest office-supplies chain, slumped the most in a year after cutting its annual profit forecast because of declines in its retail and international business. Framingham-based Staples had gained 48 percent this year through Tuesday, compared with a 16 percent increase for the Standard & Poor’s 500 index. The stock fell $2.57, or 15.29 percent, to close at $14.27.

Staples, which suffers from waning consumer demand for products like ink, toner, and computer accessories, cut its outlook after second-quarter results were weaker than it expected. Chief executive Ron Sargent said drops in international operations countered online growth and cost management. International sales fell 8 percent in the period ended Aug. 3.


The decreasing appetite for items such as ink is a trend that may continue as offices become more digital, Daniel Binder, an analyst for Jefferies & Co. in New York, wrote in a note to clients.

Full-year earnings-per-share from continuing operations will be $1.21 to $1.25, Staples said in a statement Wednesday, trailing the $1.32 average of estimates compiled by Bloomberg. The company previously projected $1.30 to $1.35.

Revenue in the second quarter declined 2.2 percent to $5.3 billion, the fifth drop in six quarters.

Net income in the second quarter fell 15 percent to $102.5 million, or 16 cents a share, from $120.4 million, or 18 cents, a year earlier, Staples said.

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