Thursday, May 20, 2010

Staples Discussion Deficient Earnings Release

Staples (SPLS) announced a 32% increase in net profits on a 4% increase in top line revenues. That’s operating leverage for you. Ron Sargent, Staples’ chairman and chief executive officer said. “With sales and profit improvement in all three of our businesses, the year is off to a good start.”No information on categories. No comment on where the emphasis will be. No comment on computers and electronics and where you think you are in the upgrade cycle.

Basically the press release had no comment. Good way for management to stay out of trouble is to not say anything much.

Disclosure: No position in this stock