Staples said that during the first quarter of 2012 the company recorded US$28 million of pre-tax expenses primarily related to head count reductions in North America, Europe and Australia, as well as the settlement of a contractual dispute (with Lyreco) associated with the acquisition of Corporate Express.
The decline also reflected 'deleverage' of fixed expenses on lower sales in European retail and Australia, as well as lower product margins in Europe.
Staples said its 2012 outlook remained unchanged with continued slow growth in the US economy and a soft demand environment in Europe.
The company expected its full-year sales to increase in the low single digits.
"In North America we continue to build momentum in categories beyond office supplies while trends in our international business remain soft," said Staples CEO Ron Sargent.
Read the interview with Corporate Express/Staples (Australia/New Zealand) CEO Jay Mutschler in the June issue of Stationery News.
