Staples 1st-Quarter Profit Up 50%; Other Retailers Strong

Staples Inc. said its fiscal first-quarter earnings rose 50%, slightly more than analyst estimates, as sales of office products to small businesses surged.

Lowe’s Cos., Limited Inc. and Tiffany & Co. also reported strong results, joining other retailers profiting from a strong U.S. economy that’s giving consumers extra cash to spend.

Staples, the nation’s largest operator of office superstores, said net income rose to $31.3 million, or 12 cents a diluted share, from $20.9 million, or 8 cents, a year earlier. Results for the recent quarter came in just above the 11-cent average estimate of analysts polled by First Call Corp.

Sales climbed 31% to $1.52 billion, and sales at stores open at least a year jumped 11%.

Its shares fell 44 cents to close at $23.96 on Nasdaq. The company released its earnings after the close of trading.

At a Glance

* Lowe’s, the nation’s second-largest home-improvement retailer, said its net income rose a higher-than-expected 34% in the fiscal first quarter to $94.5 million, or 54 cents a diluted share, from a year ago, four cents higher than estimates. Sales jumped 21% to $2.9 billion, and sales at stores open at least a year were up 5%.

* Limited said fiscal first-quarter earnings rose 34% to $25.8 million, or 9 cents a diluted share, from a year ago, matching analyst forecasts, as the company focused on turning around its lagging women’s clothing business by closing unprofitable stores and shedding unrelated businesses. Revenue rose 10% to $2 billion.

* Tiffany & Co., a retailer of diamond jewelry and other luxury items, said its fiscal first-quarter earnings rose a better-than-expected 25% to $11.1 million, or 31 cents a diluted share, from a year ago. Analysts had expected 28 cents.

Revenue rose 13% to $226.2 million, and sales at stores open at least a year rose 23%.