Staples announced the results for its fourth quarter and fiscal year ended January 28, 2006. Total company sales for the fourth quarter grew nine percent to $4.5 billion compared to the same quarter of 2004. North American Retail revenues increased eight percent and same store sales rose three percent versus last year. North American Delivery sales increased 18 percent. International sales grew nine percent in local currency and were flat in US dollars. Total company net income of $290 million rose 15 percent, and earnings per share of $0.39, on a diluted basis, rose 18 percent compared to the fourth quarter of 2004.
For fiscal year 2005, sales reached $16.1 billion, an 11 percent increase compared to 2004. Full year North American Retail sales rose nine percent and comparable store sales increased three percent. North American Delivery revenues increased 18 percent. International sales rose 10 percent in local currency or nine percent in US dollars. The company reported 2005 net income of $834 million, an 18 percent increase versus last year. Earnings per share of $1.12, on a diluted basis, rose 20 percent versus 2004.
"Our 69,000 associates delivered great results in 2005," said Ron Sargent, Staples' chairman and CEO. "Not only did the team achieve our financial objectives for the year, but we also made solid progress on several initiatives to sustain our long term growth."
Key company accomplishments for the fourth quarter and year:
Total Company
North American Retail
North American Delivery
International
The company also announced an annual cash dividend of $0.22 per share payable on April 20, 2006, to shareholders of record on March 31, 2006. This represents a 32 percent increase versus 2005.
"As we celebrate Staples' 20th anniversary in 2006, we remain committed to making it easy for our customers to buy office products," said Sargent. "While I'm really proud of what the team has accomplished over the past two decades, I'm even more impressed with our people's commitment and enthusiasm to keep driving our business forward."
Outlook
For the first quarter of 2006, Staples anticipates high single-digit sales growth for the total company and expects earnings per share to grow 15 to 20 percent. For the full year, the company expects low double-digit sales growth and expects earnings per share to grow 15 to 20 percent. Earnings growth expectations for the first quarter and full year 2006 refer to 2005 earnings restated to include the impact of stock compensation expense under the Financial Accounting Standards Board's statement 123R, which is effective beginning in Q1 2006. The company will restate its quarterly and year-end results for 2005 to reflect the impact of stock options. Pro forma restated financial statements are available on the "Financial Measures" section of the investor relations Web site on www.staples.com. The company's earnings outlook also reflects the impact of a 53rd week in fiscal 2006.
