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Staples, Inc. Message Board

  • dowdog53 dowdog53 Sep 13, 2000 2:51 PM Flag

    Great buying opertunity ! eom


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    • 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.

      Thanks again.

    • 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.

      In addition,
      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: and both advanced in the August rankings. With
      140,000 buyers, landed at the No. 14 position
      from No. 20 in July, while with 130,000
      buyers claimed the No. 17th slot from the No. 27
      position in July.


      • 1 Reply to bfavery_2000
      • 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
        acquisition strategy.

        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.

        Because the
        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
        store age.

        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.

        As the
        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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