18.05.2016 - Staples shares may fall in the medium term
Staples Inc. whose merger with Office Depot has been blocked by a federal judge, reported a drop in profits by 30%. Thus, the company's profit in the 1st quarter was 41 million dollars versus 59 million dollars a year earlier. Revenue fell by 3.1%, to 5.1 billion dollars. Sales in North America decreased 5.2% to 2.25 billion dollars. According to our forecasts, the financial performance of the retailer will deteriorate and we expect the company's shares decline by 15-17% in the medium term.