Staples Inc. (NASDAQ: SPLS) released its fiscal second-quarter earnings report before the markets opened Wednesday. The office supplies retailer had $0.12 in earnings per share (EPS) on $4.9 billion in revenue. That compared to consensus estimates from Thomson Reuters that called for EPS of $0.12 and revenue of $4.96 billion. In the same period of the previous year, Staples posted $0.12 in EPS on $5.22 billion.
Comparable sales dropped 2% in the second quarter. However, when not adjusting for local currency sales growth, comparable sales actually decreased 3%.
The company gave its guidance for the third quarter. Staples expects EPS in the range of $0.33 to $0.36, and it expects sales to decrease compared to the third quarter of the previous year. There are consensus estimates of $0.93 in EPS on $21.46 billion in revenue.
During this past quarter, Staples closed 15 stores in North America. Since the beginning of 2014, the company has closed 212 store in North America as part of a previously announced plan to close at least 225 stores in 2014 and 2015 combined.
Ron Sargent, chairman and CEO of Staples, commented on earnings:
Our second quarter results were in-line with our expectations and reflect steady progress on our strategic reinvention. We continued to drive growth in our delivery businesses and in categories beyond office supplies, and we grew operating income during the second quarter. We remain on track with the acquisition of Office Depot, which we expect to close by the end of 2015.
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At the end of the second quarter, cash and cash equivalents totaled $611 million, compared to $627 million at the end of the previous fiscal year. The company has generated operating cash flow of $300 million and invested $138 million in capital expenditures year to date, resulting in free cash flow of $162 million for the first half of 2015, a decrease of $32 million compared to the first half of 2014.
Shares of Staples were down 1% Wednesday morning, at $14.01 in its 52-week trading range of $10.82 to $19.40. The stock has a consensus analyst price target of $18.36.
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