Staples announced the results for its first quarter ended April 30, 2016. Total sales were $5.1 billion, a decrease of three percent compared to the first quarter of 2015.
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On a GAAP basis, the company reported net income of $41 million, or $0.06 per diluted share. First quarter 2016 results on a GAAP basis include pre-tax charges of $66 million primarily related to costs associated with the proposed acquisition of Office Depot and store closures, and $32 million related to the pending sale of the company’s Print Solutions business.
Total company sales for the first quarter of 2016 decreased one percent compared to the first quarter of 2015 after excluding the impact of changes in foreign exchange rates and store closures during the past year.
Excluding the impact of charges taken during the first quarter of 2016, the company reported non-GAAP net income of $109 million, or $0.17 per diluted share, versus first quarter 2015 non-GAAP net income of $109 million, or $0.17 per diluted share.
Reduced total company selling, general and administrative expense as a percentage of sales by 28 basis points on a GAAP basis, or 44 basis points on a non-GAAP basis after excluding charges of $24 million during the first quarter of 2016 and $15 million during the first quarter of 2015.
Improved total company operating income rate by 27 basis points on a GAAP basis, or 14 basis points on a non-GAAP basis after excluding charges of $67 million during the first quarter of 2016 and $75 million during the first quarter of 2015.
Grew sales in North American Commercial one percent on a local currency basis.
Grew operating income in North American Commercial by $14 million and improved operating income rate by 63 basis points.
Generated operating cash flow of $276 million and invested $44 million in capital expenditures resulting in free cash flow of $232 million.
Closed 14 stores in North America as part of a previously announced plan to close approximately 50 stores in North America during 2016. ■