Revenue during the quarter dropped 4.90 percent to $4,149 million from $4,363 million in the previous year period. Gross margin for the quarter expanded 50 basis points over the previous year period to 25.98 percent. Total expenses were 96.07 percent of quarterly revenues, down from 97.20 percent for the same period last year. This has led to an improvement of 113 basis points in operating margin to 3.93 percent.

Operating income for the quarter was $163 million, compared with $122 million in the previous year period.

However, the adjusted operating income for the quarter stood at $171 million compared to $186 million in the prior year period. At the same time, adjusted operating margin contracted 14 basis points in the quarter to 4.12 percent from 4.26 percent in the last year period.

"2017 is off to a good start and, consistent with our strategy, we drove solid sales growth in the mid-market and improved profitability in North American Retail during the first quarter," said Shira Goodman, Staples' chief executive officer. "Based on our success growing categories beyond office supplies, we’re intensifying our focus on several key growth categories including facilities supplies, breakroom supplies, furniture, technology solutions, and promotional products, or what we now refer to as ‘Pro Categories’. We're pursuing this opportunity from a position of strength as we bring together the products, services, and expertise to provide a differentiated offering to business customers of all sizes."

For the second-quarter 2017, On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.10 to $0.13.

The company has spent $15 million cash to meet investing activities during the quarter as against cash outgo of $99 million in the last year period.

The company has spent $80 million cash to carry out financing activities during the quarter as against cash outgo of $86 million in the last year period.

Cash and cash equivalents stood at $1,290 million as on Apr. 29, 2017, up 36.36 percent or $344 million from $946 million on Apr. 30, 2016.

Working capital drops significantly
Staples, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,391 million as at Apr. 29, 2017, down 29.36 percent or $578 million from $1,969 million on Apr. 30, 2016. Current ratio was at 1.44 as on Apr. 29, 2017, down from 1.59 on Apr. 30, 2016.

Cash conversion cycle (CCC) has decreased to 7 days for the quarter from 42 days for the last year period. Days sales outstanding went down to 36 days for the quarter compared with 39 days for the same period last year.

Days inventory outstanding has decreased to 24 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding went down to 53 days for the quarter from 55 for the same period last year.