Office supply superstore Staples Inc. (Nasdaq: SPLS) is hosting its annual analyst and investor conference today in Framingham, Mass. The event can be viewed live at
investor.staples.com
, where a replay will be available tomorrow (Oct. 11) through midnight on Tuesday, Nov. 7.
For the third quarter, Staples said in a news release today on BusinessWire, the company still is expecting earnings per share to grow by 15 to 20 percent over the year ago period’s. That forecast is in line with average analyst estimates.
For all of 2006, the company expects low-double-digit year-over-year growth for the total company on the top line, also in line with expectations. It expects low-single-digit increases in comparable sales in North American retail and revenue growth in the mid-teens in North American delivery. In International, it predicts positive revenue growth local currency. Staples expects free cash-flow generation in the range of $700 million this year.
In the next fiscal year, in line with long-term objectives, Staples expects to achieve sales growth of 10 to 15 percent and earnings growth of 15 to 20 percent for the full year. A low-single-digit comparable sales increase is expected in North American retail, with revenue growth in the mid-teens in North American delivery, and in International, low-double-digit growth in local currency.
Today’s conference will include presentations from the management team and updates on company strategies and growth initiatives. Among the highlights:
Staples has entered the Miami market with three retail stores, and plans to add another 20 to 25 stores by the end of 2007. The next new retail market entry will be Denver, in 2007.
The company continues to differentiate itself through own-brand products; it has a new long-term goal for own-brand sales penetration of 30 percent.
Staples will test a new stand-alone copy & print shop in the United States; four such shops will be opened in the Boston area, starting this month.
Staples will expand its Easy Mobile Tech initiative and plans to roll out in-house techs in every store by year end.
Staples’ delivery business expects to grow in the mid-teens for the next several years through customer acquisition, increasing purchases of existing customers, and geographic expansion.
Staples plans to open a multi-channel fulfillment center in Colorado in 2007.
Goals for the company’s North American Delivery Summit Supply Chain include increasing inventory turns from 12x to 15x, deferring capital expense, leveraging logistics expense, and improving customer service.
Staples International is “well-positioned for top-line growth and profit recovery.” The company’s UK Retail and French Delivery businesses are showing signs of top-line improvement, and new businesses in emerging markets continue to experience rapid growth.
