SPLS’ Q1 Results Were Better Than Expected, With Decent Quality

Analysts at JP Morgan reiterate their "overweight" rating on Staples SPLS. SPLS posted better-than-expected Q1 results, while investors were expecting a “miss in the Q1 results.” The trends in local currency sales improved 100 bps on the international front. SPLS is expecting “LSD sales growth, with operating EPS in the range of $0.18-$0.20 for Q2.” According to JP Morgan, “Overall, sales were almost in line with some puts and takes, but two year trends improved in all divisions (just not quite as much as modeled). The quality was generally good with gross margin in line and SG&A better.” More Analyst Ratings here