Staples 1Q Sales Up 24%, as Web Partnerships Formed
Staples Inc., Framingham, MA, has experienced strong first-quarter financial results and announced two partnerships bolstering the company’s Internet presence.
The office supplies company reported total sales for the first quarter rose 24% to $2.1 billion from $1.7 billion reported for the same period last year. Comparable sales in the 763 stores that have been open for more than one year and delivery hubs increased 9% for the first quarter company-wide, and increased 10% for the first quarter in North America.
The quarter ended May 1.
Net income for the quarter totaled $50 million, compared with $34.1 million for last year.
Historical data has been restated to reflect the merger with Quill Corp. under the pooling of interests method of accounting.
In separate developments, Staples has formed partnerships with two Internet businesses. In one, the company teamed with register.com, a domain-name registration service. As part of the agreement, Staples invested $7 million in register.com and has formed a cross-marketing effort to help its small-business customers initiate e-commerce activities and to provide easy access to Web site registration.
Staples also invested $3.5 million in Point.com, formerly Nth Dimension Corp., a Web retailer of wireless phones, service plans and accessories.
“These partnerships are designed to make Staples.com the one-stop e-commerce shop for small businesses,” Thomas G. Stemberg, Staples chairman and CEO, said in a statement. “By teaming with leaders in this space, we’re able to add incredible value to our Web site.”
