Next Score View the next score

    mass. movers

    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.

    Get Talking Points in your inbox:
    An afternoon recap of the day’s most important business news, delivered weekdays.
    Thank you for signing up! Sign up for more newsletters here

    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.