Office Depot Inc (ODP): Staples, Inc. (SPLS) Takes a Break

While the tiny company nominally provides paper and pens just as Staples, Inc. (NASDAQ:SPLS) does, it seems its real forte is in providing businesses with all sorts of back-of-store stuff like janitorial supplies and, yes, breakroom needs. It also comes with an business oriented e-commerce platform that could help it offset the inroads Amazon.com is making on its operations.

Staples has the second-biggest Internet presence behind Amazon in terms of SKUs offered, and last year reorganized its operations by putting the same person in charge of its stores and online business. Couple that with the delivery service Lonesource brings with it, and Staples complements the focus it has for its own delivery division, which goes hand-in-hand with e-commerce and which accounts for the majority of its annual sales.

Until this quarter’s results were released, Staples had been on the road to recovery with its stock hitting new 52-week highs. Despite the hit it took — shares are down 16% — an economy clawing its way back, an industry that’s been necessarily slimmed down, and a management team that’s now playing to its strengths all suggest this will only be a temporary break for the office supply king.

The article Staples Takes a Break originally appeared on Fool.com and and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com and Staples. 

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