their announcement earlier this year stated that they would be buying 200 million back this year. i don't know where you got $400 million from but authorized isn't reality when they only say $200
bf, I suspect SPLS may have been lumped in with
the others. If so, I wouldn't be surprised to see us
move back above $16 very quickly. Sometimes "they"
simply shoot first and ask questions later. In any case,
a point or two short-term dip for SPLS is not
Regards - Dale
Thanks for the information. Now, having assumed
that the sell off in the past two days was due to the
pre-announcements of other multinationals, I have to wonder once
again what the catalyst is.
Staples reported in last Monday's 10-Q filing
that they've only repurchased $145 million worth of
stock during their fiscal first half ended 7/29/00.
With $400 million authorized, they have $255 million
more to spend before the fiscal year ends. Does anyone
here follow this? ...know if they've done any buying
Regards - Dale
BF, I hope folks aren't thinking the slide of the
Euro is having an impact on Staples. The currency
issue can be a problem for some larger multi-national
companies, but as far as Staples is concerned, it's a
At the end of Q2 (7/29/00), Staples grew to a
total of 1,254 stores: 1,105 located in North America
(943 in the U.S., 162 in Canada), and 149 located in
Europe (United Kingdom, Germany, the Netherlands,
Portugal and Belgium).
Q2 sales from European
Operations increased 87% to $147 million. While this
regional year over year growth is impressive, the bottom
line is that it only represents 6.7% of Staples' $2.2
billion in sales for the quarter. European sales are
simply too small for the company to be noticably
affected by fluctuations in the Euro.
Staples has a risk management control process in place
that uses currency and interest rate swaps, hedges and
derivatives to reduce exposure to foreign exchange risks.
IMO, the Euro is simply a non-issue with Staples.
Regards - Dale
Of 1100 Staples stores and affilates, there are
48 in the UK, 25 in Germany, and 88 in Canada. I
couldn't find the number in Portugal, but there are 867 in
the US. What impact, if any do you see the Euro
having on SPLS? I believe the GDP was somewhere north of
3.4% in Europe, just reported. Any thoughts?
shoppers for August:
office.com both advanced in the August rankings. With
140,000 buyers, staples.com landed at the No. 14 position
from No. 20 in July, while office.com with 130,000
buyers claimed the No. 17th slot from the No. 27
position in July.
S&P revises Staples Inc <SPLS.O>
NEW YORK, Sept 13 - Standard & Poor's today
revised its outlook on Staples Inc. to positive from
At the same time, Standard & Poor's
affirmed its triple-'B'-minus corporate credit, senior
unsecured debt, and bank loan ratings on Staples.
The outlook revision is based on Standard & Poor's
belief that profitability measures will continue to
improve and that capital spending and share repurchases
will be managed prudently, with an emphasis on
strengthening the balance sheet through debt reduction.
The ratings on Staples reflect the company's position
as a leading retailer of office products in North
America and Europe, strong and consistent retail segment
performance relative to its competition, and adequate
profitability and credit protection measures.
strengths are offset by an increasingly competitive
environment and the company's aggressive growth and
Based in Westborough, Mass.,
Staples' core strength is its 1,100 stores, mostly located
in North America, which accounted for 67% of the
company's $8.9 billion in sales in 1999.
company also has built a formidable office products
catalog business, which was strengthened through the
acquisition of Quill Corp. in April 1998.
catalog business has lower fixed costs than the retail
segment, growth in the catalog business should result in
improved profitability measures for the company.
Staples is the industry leader in terms of profitability.
Return on permanent capital was nearly 18% in 1999, and
operating margins have exceeded 10% for more than five
Staples faces less direct competition in
most of its markets than Office Depot Inc. or
OfficeMax Inc., the two other office products superstore
Staples' strategy has been to target
markets with favorable demographics where it can achieve
economies of scale through dense store concentration.
This has enabled solid comparable-store and delivery
sales growth while its competitors have struggled.
Comparable-store sales have consistently grown by about 10%, and
usually lead the industry due to Staples' young average
Rapid expansion, however, could
create management challenges.
Staples plans to
expand aggressively, opening about 170 new stores in
2000, some of which will be in Europe.
total number of office products superstores in North
America approaches 3,000, competition between Staples and
its two primary competitors, Office Depot and
OfficeMax, is likely to intensify as they are forced to
compete head-to-head in more markets.
Standard & Poor's expects profitability
to improve over time, driven by improvements in the
retail and international operations and decreasing
losses in the Internet business.
If the company
manages future share repurchases, acquisitions, and
capital spending in the context of a prudent financial
policy with an emphasis on reducing debt, the ratings
may be upgraded.
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