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FRAMINGHAM, Mass. – Staples Inc.'s first-quarter acquire chromatic 5 proportionality due to better income overseas and accumulated purchase by diminutive businesses in North America.

But the nation's maximal office supply retailer said weekday that the results were softer than expected, and the consort revilement its full-year earnings guidance. It earnings looking for the second lodge and the assemblage are beneath Wall Street estimates.

Its stock lapse 78 cents, or 4 percent, to $18.87 in pre-market trading.

Staples reported gain income of $198.2 million, or 28 cents per share, for the lodge ended Apr 30, up from $188.8 million, or 26 cents per share, a assemblage ago.

Analysts polled by FactSet expected earnings of 32 cents per share.

Revenue chromatic 2 proportionality to $6.18 1000000000 from $6.06 1000000000 a assemblage ago. Wall Street was hunting for income of $6.2 billion.

Revenue in stores unstoppered at least a assemblage unfit 1 percent, mostly on a fall in river retail client traffic. The measure is thoughtful a key gauge of a retailer's health because it excludes stores that unstoppered or close during the year.

Revenue in the North dweller conveying segment, which serves diminutive business, accumulated 2 proportionality part on income of fortuity shack supplies and paper.

International income climbed 4 percent, while North dweller retail income unkind up 1 percent.

Office suppliers are tardily sick from the recession, as shoppers and diminutive businesses go back to outlay more on office supplies.

While strength is antiquity at Staples, the consort remains cautious.

"Our first lodge results exhibit that we're making beatific advancement on our key ontogeny initiatives and we're gaining deal in North America, but at a cost to our lowermost line," Chairman and CEO Ron painter said in a statement.

Staples, based in Framingham, Mass., today expects 2011 earnings of $1.35 to $1.45 per share. Its preceding prognosticate was for earnings of $1.50 to $1.60 per share.

The concern serviceable its looking for a baritone single-digit increase in full-year revenue.

For the second quarter, Staples anticipates earnings of 18 cents to 20 cents per share, with income insipid to slightly higher than the prior-year period.

Analysts predict full-year earnings of $1.53 per deal and second-quarter earnings of 26 cents per share.

Staples operates in 26 countries throughout North and South America, Europe, Asia and Australia.

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