Earnings Slips Again, But the Money is Free Flowing

Well, here we are at the end of another quarter and yet another big disappoint from Staples.

Is anybody surprised that the company continues to miss the sales estimates quarter after quarter?

I certainly am not the least bit surprised.

Of course, as they have done for past quarters, they blame the weather.

How long are they going to continue to blame something that never changes?

Seriously, it is time to admit the truth.

YOUR SALES SUCK AND NOTHING IS GOING TO CHANGE THAT!!

Do I make myself clear on that one?

What really irritates me on this is that other companies use the same lame excuse as well.

Certainly, places like Home Depot and Lowe's can blame the weather in places where a lot of building takes place. It is understandable in that regards.

Target and Sears can’t really blame the weather either as they also continue to have suffering sales.

So what is really wrong here?

The answer is that Staples is clueless about their future.

When I read the transcript to their last earnings report, they stated that they didn’t have the information about the back-to-school season yet.

Ok, if this is not the most obvious lie in the world than I don’t know what is. They claim that they won’t know the plans until early July. To make matters worse, they say that no company is ready for back-to-school this soon.

Excuse me.

I remember back in the Woolworth days, we started getting all the back-to-school merchandise in before the old school year was over. In fact, we even started having some of the flyers start trickling in as well for the season.

In fact, when I worked for Staples, the same thing was happening there as well. To say that they don’t know is either providing that Chairman/CEO Ronald Sargent is either an idiot or just blind to see what his company is really doing. Of course he must take his lead from Obama as he is clueless as well on what is going on in the world around him.

Now on another front, Staples is handing out bonuses to their executives for “trying to turn around the company”.

Of course, this is dumb as well as sales continue to drop and slump to lower levels every quarter.

As an example of the payouts, pinhead Sargent got a $300,000 bonus for a total compensation of $10.8 million, a 40% increase over the past year. This is at a time when the employees get fewer and fewer, while the fat cats at the top get more than plenty to live on.

So overall, Staples continues to slip all around, while freely handing out its profits to the top brass.

This all leads me to think that this company is definitely on the road to failure.

What will they blame next quarter, Godzilla, anyone?