Staples Strengthens Relationship With Apple

Staples made it clear during Wednesday’s (Nov. 19) earnings call that it’s committed to Apple and everything that comes with it — which includes Apple Pay.

“We’ve strengthened our relationship with Apple and we’re excited to have iPads and iPhones at retail for the upcoming holiday season. Additionally, we’re expanding our relationship with the U.S. postal service by offering postal services as part of the approved shipper program, and we’ll have that in more than 500 stores by year end,” CEO Ron Sargent said during the earnings call to investors. “We launched a new iPad app which provides an improved customer experience, easy re-ordering and faster search and navigation. We also launched the new app for the iPhone which supports Apple Pay and makes it easy for customers to shop and checkout whenever and however they want.”

Staples posted a mixed quarter as total company sales, including North American and international markets, were down 2.5 percent from last year’s third quarter from $6.1 billion to $5.9 billion. North American sales were $2.8 billion, a decrease of six percent year over year. Sales growth was negatively impacted by approximately three percent due to store closures during the past year, the company reported– 127 stores in North America this year to date, with roughly 170 more closures expected in North America in the coming year. Comparable store sales, which exclude sales on Staples.com, decreased four percent, reflecting a four percent decline in traffic and flat average order size compared to last year’s third quarter. Online growth, however, was modest for the quarter though as Staples.com sales grew by 10 percent.

Non-GAAP and GAAP operating income were also down: GAAP operating income was down $38 million to $328 million and non-GAAP operating income was down $62 million to $369 million. International sales were $970 million, a decrease of four percent, year over year — primarily driven by a sales decline in China, the company said. Staples is also predicting a sales decrease in the fourth quarter. The North American commercial market grew by 3.3 percent in the third quarter to $2.2 billion.

“We’re building momentum as we reinvent Staples,” Staples CEO Ron Sargent said in the company’s earnings release. “During the third quarter, we accelerated growth in our delivery businesses, gained traction in categories beyond office supplies, and changed the way we work to drive cost savings.”