Staples Falls Profit Forecast Trails EstimatesKevin Orland
Staples Inc. fell the most in more than two months after forecasting second-quarter profit that was less than analysts estimated.
The shares dropped 13 percent to $11.71 at the close in New York for the biggest one-day decline since March 6. Framingham, Massachusetts-based Staples has fallen 26 percent this year.
Profit per share in the quarter through July will be 9 cents to 14 cents, the company said today in a statement. The average of 16 analysts’ estimates compiled by Bloomberg was 15 cents.
Staples is shutting 225 stores to trim costs amid rising competition from Amazon.com Inc. and sluggish demand for office supplies. The company also has been facing a larger non-Internet rival since Office Depot Inc. bought OfficeMax Inc. in November.