May 22, 2002 2 min read

FRAMINGHAM, Mass. (AP) – First-quarter profits at office supply chain Staples more than doubled to $94 million, the company said Tuesday, beating analysts’ estimates even on essentially flat sales. Staples earned 20 cents per share, up from $40 million, or 9 cents per share, in the year-ago quarter. The latest results include a one-time tax benefit charge of $29 million, or 6 cents per share.

Excluding the charge, Staples earned $65 million, or 14 cents per share, 3 cents better than estimates from analysts surveyed by Thomson Financial/First Call.

The company also said it now expects full-year earnings of 79 to 83 cents per share; analysts were expecting 79 cents.

Staples stuck with its second-quarter earnings guidance of 12 cents per share.

Staples said sales in consumables was strong but mitigated by weakness in technology and furniture sales on continued lackluster capital spending by businesses.

Sales grew 3 percent to $2.74 billion, from $2.67 billion in the same quarter last year. But overall company comparable sales were flat and comparable store sales fell 2 percent.

“We are very pleased with our strong results for the first quarter,” said Ron Sargent, Staples’ president and chief executive officer. “Solid improvement in key metrics measuring sales and earnings momentum, such as customer count comparables, customer service levels and new store revenue productivity, give us confidence that we are on track to achieve our goals this year and beyond.”

Staples operates more than 1,400 stores worldwide.