Reports from Staples Inc indicate quarterly profit and sales that are higher-than-expected as North America-based business customers purchase more furniture, as well as core office supplies such as stationery and breakroom products like coffee machines.
The shares of the biggest retailer of US office supplies increased as high as 11 percent.
The sales of the commercial unit of the North America-based Staples, which is selling products to various businesses via contracts, increased 3.3% during the third quarter which ended on the 1st day of November. The said unit is where over one-third of the total sales of the company can be credited.
According to the survey conducted last week by the National Federation of Independent Business, the optimism of small businesses in the US increased during the month of October, when more business owners expressed their desire to make company investments.
On Wednesday, Staples Inc also tackled its raised forecast on free cash flow it has for the entire year from more than $600M to over $800M.
The said company, which had its two-year plan launched to be able to save annual costs worth $500M, stated that this year, it is going to shut 170 North America-based stores, higher than what was announced earlier which was at 140.