Staples (SPLS) fell to lowest in almost 20 years on Tuesday as the office-supply giant closes stores and watches its customers patronize online rivals.
Shares fell to $7.75, the lowest since December 1997, and are now down about 19% so far this year. On Wednesday Staples rose $0.05 to close at $7.80 Over the past year, Staples' stock had shed an astounding 36% compared a 6.6% gain for the S&P 500.
Enthusiasm on Wall Street is hard to find in the wake of Staples' failed bid earlier in the year to merge with smaller rival Office Depot (ODP) . The aftermath has left it vulnerable to growing competition from Amazon (AMZN) , Walmart (WMT) and others in office supplies. As a result of that vulnerability, Staples' recent ugly financial performances may worsen.
Staples saw same-store sales at its more than 1,600 stores in the U.S. and Canada fall 4% in the second quarter. Execs pinned the blame on weak store traffic. Operating income for the North America stores segment fell 57% year over year to $12 million. Sales plunged in tablets, tech accessories, ink, toner and office supplies. To add insult to injury, same-store sales for Staples.com rose a meager 1%.