Staples announced the results for its third quarter ended October 28, 2006. The company drove strong performance in each of its three businesses, gaining market share and winning with customers around the world.
Total company sales for the third quarter 2006 increased 12 percent to $4.8 billion compared to the $4.2 billion reported for the third quarter of 2005. Net income rose 29 percent year-over-year to $290 million, and earnings per share, on a diluted basis, increased 30 percent to $0.39, from the $0.30 achieved in the third quarter of last year.
Third quarter 2006 earnings results reflect a lower tax rate, due to the favorable resolution of certain tax matters, and a correction for prior years'' stock-based compensation. Excluding these items, net income grew 18 percent to $265 million and earnings per share, on a diluted basis, were $0.36, a 20 percent increase versus third quarter 2005.
Third quarter North American Retail comparable store sales increased four percent versus 2005, reflecting an excellent back-to-school season, strong traffic, and higher average order size. Total North American Retail sales rose nine percent and North American Delivery grew sales 16 percent versus last year. International sales rose 10 percent in local currency and 15 percent in US dollars, with five percent comparable store sales growth in European Retail.
"The Staples team delivered another strong quarter of results," said Ron Sargent, Staples'' chairman and chief executive officer. "While we continue to improve margins, we''re focused on driving profitable growth, and we''re pleased to see top line momentum in every part of our business."
Highlights for the third quarter include:
