Staples Inc. (NASDAQ: SPLS) reported fourth-quarter and full-year 2013 results before markets opened Thursday. For the quarter, the office supplies retailer posted adjusted diluted earnings per share (EPS) of $0.33 and $5.87 billion in revenues. In the same period a year ago, Staples reported EPS of $0.46 on revenue of $6.57 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.39 and $5.97 billion in revenue.

For the full year, Staples reported adjusted EPS of $1.13 on revenues of $23.11 billion, compared with EPS of $1.39 and revenues of $24.38 billion in fiscal year 2012. The consensus estimates called for EPS of $1.22 on revenues of $23.21 billion.

In its outlook comments, the company said it will close 225 stores in North America by the end of 2015 and initiated a cost-cutting program that is expected to save $500 million annually in pretax dollars by the end of next year. Staples guided first quarter sales “to decrease versus the first quarter of 2013,” and diluted EPS is expected to total $0.17 to $0.22. Staples also expects to generate $600 million in free cash flow for its 2014 fiscal year, significantly less than the $737 million it posted in 2013.

Analysts had estimated EPS for the first quarter of $0.27 on sales of $5.74 billion. For the full year, the consensus estimate calls for EPS of $1.30 on sales of $23.01 billion.

Fourth quarter same-store sales fell 7% in the company’s North American stores. Online sales rose 10% in the quarter, but who knows what the actual number is. Our guess is that it is fairly small and will not move the needle much.

Shares traded down more than 10% in Thursday’s premarket to $12.04, below the current 52-week range of $12.08 to $17.30. Thomson Reuters had a consensus analyst price target of $14.50 before these results were announced.

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