Staples Inc. (NASDAQ: SPLS) reported first-quarter 2015 results before markets opened Wednesday. The office supplies retailer posted adjusted diluted earnings per share (EPS) of $0.17 and $5.26 billion in revenues. In the same period a year ago, Staples reported EPS of $0.18 on revenue of $5.65 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.17 and $5.47 billion in revenue.

On a GAAP basis Staples posted net income of $59 million (EPS of $0.09) in the first quarter. Virtually all the difference between GAAP and non-GAAP earnings was due to an adjustment for income tax expenses.

In its outlook statement for the second quarter of 2015, Staples said it expects sales to decrease compared with the same quarter of 2014. Adjusted EPS is forecast in a range of $0.11 to $0.13 for the quarter. Consensus estimates call for EPS of $0.11 and revenues of $5.08 billion. The revenue expectation is about 2.6% below last year’s second quarter revenues of $5.22 billion.

Guidance does not include any costs related to Staples’ acquisition of Office Depot. Staples took pretax charges of $45 for restructuring and related activities in the first quarter.

Staples reported that it closed 28 North American stores in the first quarter and that it has closed a total of 197 of a planned 225 closures in 2014 and 2015 in North America.

Staples shares have risen more than 40% from its 12-month low. Acquisition target Office Depot Inc. (NYSE: ODP) is up about 86% in the same period. The companies continue to expect the merger will be completed by the end of this year. It remains to be seen if the combined company will be able to maintain those gains.

Shares traded down about 4% in Wednesday’s premarket to $15.75, in a 52-week range of $10.70 to $19.40. Thomson Reuters had a consensus analyst price target of around $18.50 before the results were announced. The highest price target is $23.00.

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