Sales in Staples' international operations for the third quarter were down 12 per cent to US$1.1 billion, reflecting weak sales in Europe and Australia.
Economic weakness drove declines in the company's European delivery businesses, as well as a six per cent decline in comparable store sales in Europe.
The company said the decrease primarily reflects 'deleveraging' of fixed expenses in Europe and Australia, as well as lower product margins in Europe, partially offset by savings related to headcount reductions in Europe and Australia.
The Australian division recently announced an accelerated name change from Corporate Express to Staples Australia, which resulted in a A$20 million charge on the subsidiary's balance sheet.
During the third quarter of 2012, the company recorded an after-tax loss from discontinued operations of US$28 million related to its European Printing Systems business, which includes US$23 million of charges related to restructuring and incremental tax expense.
Total company sales for the third quarter of 2012 were US$6.4 billion, a decrease of two per cent, compared to the third quarter of 2011.
North American retail sales of US$2.6 billion were flat compared to the third quarter of 2011.
Comparable store sales for the third quarter of 2012 decreased one per cent, as traffic declined two per cent and average order size increased one per cent versus the prior year. Lower sales of computers and software were offset by growth of copy and print services and core office supplies.
The company expects full year sales to be flat compared to the prior year.
