8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): March 2, 2010

STAPLES, INC.

(Exact name of registrant as specified in charter)

Delaware	0-17586	04-2896127
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Five Hundred Staples Drive, Framingham, MA	01702
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 508-253-5000

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02     Results of Operations and Financial Condition

On March 2, 2010, Staples, Inc. announced its financial results for the quarter and fiscal year ended January 30, 2010.  The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Form 8-K and the exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01     Financial Statements and Exhibits

The exhibit listed on the Exhibit Index immediately preceding such exhibit is furnished as part of this Current Report on Form 8-K.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:	March 2, 2010	Staples, Inc.
		By:	/s/ Kristin A. Campbell
			Kristin A. Campbell
			Senior Vice President,
			General Counsel and Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated March 2, 2010.

EX-99.1

Exhibit 99.1

Staples, Inc. Announces Fourth Quarter and Full Year 2009 Performance

FRAMINGHAM, Mass.--(BUSINESS WIRE)--March 2, 2010--Staples, Inc. (Nasdaq: SPLS) announced today the results for its fourth quarter and fiscal year ended January 30, 2010. Total company sales for the fourth quarter 2009 increased four percent to $6.4 billion compared to the fourth quarter of 2008. Net income for the fourth quarter 2009 declined 18 percent year over year to $234 million, and diluted earnings per share, on a GAAP basis, decreased 20 percent to $0.32 from the $0.40 achieved in the fourth quarter of last year.

During the fourth quarter of 2009, the company recorded a previously announced pre-tax charge of $42 million related to a settlement of several retail wage and hour class action lawsuits, and also recorded a pre-tax integration and restructuring expense of $20 million related to Corporate Express. Excluding the impact of these special items, as well as pre-tax integration and restructuring expense of $41 million and a tax gain of $57 million during the fourth quarter of 2008, adjusted earnings per share, on a diluted basis, increased six percent to $0.38 from the $0.36 achieved in the fourth quarter of last year.

“With a strong finish in the fourth quarter, our team delivered a solid 2009,” said Ron Sargent, Staples’ chairman and chief executive officer. “We made great progress on the integration of Corporate Express, took big steps toward building a global Staples brand, laid a solid foundation for growth in our technology services and copy and print businesses, and strengthened our international leadership team.”

For the full year 2009, total company sales increased five percent to $24.3 billion compared to the full year 2008. Net income decreased eight percent year over year to $739 million, and diluted earnings per share, on a GAAP basis, decreased 10 percent to $1.02 from the $1.13 achieved last year.

Total company sales for the full year 2009 decreased eight percent after adjusting sales for 2008 to include Corporate Express’ sales of $3.4 billion for February 2008 to June 2008, prior to the acquisition.

For the full year 2009, the company recorded $84 million of pre-tax integration and restructuring expense, as well as the previously announced pre-tax charge of $42 million related to a settlement of several retail wage and hour class action lawsuits. Excluding these special items, as well as $174 million of pre-tax integration and restructuring expense for the full year 2008, adjusted earnings per share, on a diluted basis, decreased 12 percent to $1.14 from the $1.29 achieved last year.

Q4 2009 and Full Year 2009 Highlights

Total Company

• On a GAAP basis, fourth quarter 2009 operating income rate declined 13 basis points to 6.59 percent compared to the fourth quarter 2008. Excluding the impact of the 2008 and 2009 special items discussed above, fourth quarter 2009 operating income rate improved 17 basis points to 7.55 percent. This improvement primarily reflects Corporate Express integration synergies and leverage of distribution, rent and marketing expense, offset by increased incentive compensation.
• On a GAAP basis, full year 2009 operating income rate declined 25 basis points to 5.69 percent compared to the full year 2008. Excluding the impact of the 2008 and 2009 special items discussed above, full year 2009 operating income rate declined 48 basis points to 6.21 percent compared to the full year 2008. This decline primarily reflects the inclusion of the less profitable Corporate Express business for the full year 2009 compared to only seven months in the prior year, subsequent to the July 2008 acquisition. Results also reflect increased incentive compensation, offset by Corporate Express integration synergies and increased marketing efficiencies.
• Generated record free cash flow of $1.8 billion after $313 million in capital expenditures during 2009.
• Utilized strong free cash flow to reduce debt by $875 million during 2009.
• Returned $237 million in cash dividends to shareholders during 2009.
• Ended the year with approximately $2.6 billion in liquidity, including $1.4 billion in cash and cash equivalents and $1.2 billion of available lines of credit.

North American Delivery

• Achieved sales for the fourth quarter of 2009 of $2.4 billion, a decrease of one percent in US dollars, and a decrease of two percent in local currency compared to the fourth quarter of 2008.
• Achieved full year 2009 sales of $9.6 billion, an increase of eight percent both in US dollars and local currency, compared to the full year 2008. After adjusting sales for 2008 to include Corporate Express’ sales of $1.8 billion prior to the acquisition, for February 2008 to June 2008, full year 2009 North American Delivery sales decreased 10 percent in both US dollars and local currency.
• Fourth quarter 2009 operating income rate increased 24 basis points to 9.16 percent compared to the fourth quarter 2008. This improvement primarily reflects Corporate Express integration synergies and reduced marketing expense, offset by increased incentive compensation.
• Full year 2009 operating income rate declined 83 basis points to 8.16 percent compared to the full year 2008. This decline primarily reflects the inclusion of the less profitable Corporate Express business for the full year 2009 compared to only seven months in the prior year, subsequent to the July 2008 acquisition. Results also reflect increased incentive compensation, offset by Corporate Express integration synergies and increased marketing efficiencies.
• Corporate Express integration on track: achieved our goals for direct and indirect buying synergies, rationalized product assortment, distributed 2010 catalog with one common product assortment, consolidated Corporate Express and Staples brands, combined sales forces, and rationalized transportation network during 2009.

North American Retail

• Achieved sales for the fourth quarter of 2009 of $2.6 billion, an increase of eight percent in US dollars and an increase of four percent in local currency compared to the fourth quarter of 2008.
• Fourth quarter 2009 comparable store sales increased three percent versus the fourth quarter of 2008, reflecting positive customer traffic and strength in computers, ink and toner, offset by weakness in durable categories such as business machines and furniture.
• Achieved sales for the full year 2009 of $9.4 billion, a decrease of one percent in both US dollars and local currency compared to the full year 2008.
• Full year 2009 comparable store sales decreased two percent versus the full year 2008.
• Fourth quarter 2009 operating income rate increased 21 basis points to 9.54 percent compared to the fourth quarter of 2008. This improvement primarily reflects purchasing synergies related to the integration of Corporate Express, as well as improved rent and distribution expense, offset by an increased mix of lower margin technology products and increased incentive compensation.
• Full year 2009 operating income rate increased 16 basis points to 8.27 percent compared to the full year 2008.
• Opened four stores and closed five stores during the fourth quarter, and opened 48 stores and closed 12 stores during the full year, ending 2009 with 1,871 stores in North America.

International

• Achieved sales for the fourth quarter of 2009 of $1.4 billion, an increase of seven percent in US dollars and a decrease of six percent in local currency compared to the fourth quarter 2008.
• Achieved full year 2009 sales of $5.3 billion, an increase of 13 percent in US dollars, and an increase of 14 percent in local currency compared to the full year 2008. After adjusting sales for 2008 to include Corporate Express’ sales of $1.6 billion for February 2008 to June 2008, prior to the acquisition, full year 2009 International sales decreased 16 percent in US dollars and decreased 11 percent in local currency.
• Fourth quarter 2009 operating income rate decreased 38 basis points to 4.13 percent compared to the fourth quarter 2008. This decline primarily reflects losses in China and the European Printing Systems business, offset by improved profitability in the European Contract, Catalog and Retail businesses.
• Full year 2009 operating income rate declined 98 basis points to 2.32 percent compared to the full year 2008. This decline primarily reflects deleverage of fixed expenses on lower sales, as well as increased loses in China and the European printing systems business. This decline was offset by Corporate Express integration synergies and the inclusion of the more profitable Corporate Express business for the full year 2009 compared to only seven months in the prior year, subsequent to the July 2008 acquisition.
• Corporate Express integration on track: implemented new regional management structure, made good progress with Europe restructuring efforts, completed direct and indirect purchasing negotiations, made progress with warehouse rationalization across Europe, and launched brand consolidation strategy during 2009.
• Closed three stores in Germany and two stores in Sweden during the fourth quarter 2009, ending the year with 328 stores in Europe, 22 stores in China, 20 stores in Australia and two stores in Argentina.

Outlook

The company’s outlook assumes a modest economic recovery in 2010. For the first quarter 2010, the company expects sales to increase in the mid single-digits compared to the same period of 2009. The company expects to achieve diluted earnings per share, on a GAAP basis, in the range of $0.22 to $0.24 for the first quarter 2010. Excluding approximately $25 million to $30 million of pre-tax integration and restructuring expense, or approximately $0.03 per share, the company expects to achieve adjusted diluted earnings per share for the first quarter 2010 in the range of $0.25 to $0.27.

For the full year 2010, the company expects total company sales to increase in the low single-digits compared to the full year 2009. The company expects to achieve diluted earnings per share, on a GAAP basis, in the range of $1.18 to $1.28 for the full year 2010. Excluding approximately $50 million to $60 million of pre-tax integration and restructuring expense, or approximately $0.05 per share, the company expects to achieve adjusted diluted earnings per share for the full year 2010 in the range of $1.23 to $1.33.

The company expects to incur the following expenses during the first quarter and full year 2010.

Approximate Dollar Amounts in Millions
	Q1 2010	FY 2010
Depreciation Expense	$115 - 125	$470 - 490
Amortization of Intangibles	15 - 20	65 - 75
Integration and Restructuring Expense	25 - 30	50 - 60
Net Interest Expense	55 - 60	225 - 235

Presentation of Non-GAAP Information

This press release presents certain results both with and without pre-acquisition Corporate Express sales, the integration and restructuring expense associated with Corporate Express, a settlement of several retail wage and hour class action lawsuits in 2009 and a special tax gain in the fourth quarter of 2008. This press release also presents certain results both with and without the impact of fluctuations in foreign currency exchange rates. The presentation of results that exclude these items are non-GAAP financial measures that should be considered in addition to, and should not be considered superior to, or as a substitute for, the presentation of results determined in accordance with GAAP. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. Management believes that the non-GAAP financial measures presented provide a better comparison to prior periods because the adjustments do not affect the on-going operations of the combined businesses. Management uses these non-GAAP financial measures to evaluate the operating results of the company’s business against prior year results and its operating plan, and to forecast and analyze future periods. Management recognizes there are limitations associated with the use of non-GAAP financial measures as they may reduce comparability with other companies that use different methods to calculate similar non-GAAP measures. Management generally compensates for the limitations resulting from the exclusion of these items by considering the impact of these items separately and GAAP as well as non-GAAP results and outlook, and in addition, in this press release, by presenting the most comparable GAAP measures ahead of non-GAAP measures and providing a reconciliation that indicates and describes the adjustments made.

Today's Conference Call

The company will host a conference call today at 8:00 a.m. (ET) to review these results and its outlook. Investors may listen to the call at http://investor.staples.com.

About Staples

Staples, the world’s largest office products company, is committed to making it easy for customers to buy a wide range of office products and services. Our wide selection of office supplies, electronics, technology and office furniture as well as business services, including computer repair and copying and printing, help our customers run their offices efficiently. With 2009 sales of $24 billion and 91,000 associates worldwide, Staples operates in 25 countries throughout North and South America, Europe, Asia and Australia serving businesses of all sizes and consumers. Staples invented the office superstore concept in 1986 and today ranks second worldwide in e-commerce sales. The company is headquartered outside Boston. More information about Staples (Nasdaq: SPLS) is available at www.staples.com/media.

Certain information contained in this news release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995 including, but not limited to, the information set forth under “Outlook” and other statements regarding our future business and financial performance. Some of the forward-looking statements are based on a series of expectations, assumptions, estimates and projections which involve substantial uncertainty and risk, including the review of our assessments by our outside auditor and changes in management’s assumptions and projections. Actual results may differ materially from those indicated by such forward-looking statements as a result of risks and uncertainties, including but not limited to: global economic conditions may continue to cause a decline in business and consumer spending which could adversely affect our business and financial performance; our market is highly competitive and we may not be able to continue to compete successfully; our growth may strain our operations and we may not be able to successfully integrate acquisitions and realize anticipated benefits; we may be unable to continue to enter new markets successfully; our expanding international operations expose us to risk inherent in foreign operations; fluctuations in foreign exchange rates could lead to lower earnings; we may be unable to attract and retain qualified associates; our quarterly operating results are subject to significant fluctuation; our effective tax rate may fluctuate; if we are unable to manage our debt, it could materially harm our business and financial condition and restrict our operating flexibility; our business may be adversely affected by the actions of and risks associated with our third party vendors; our expanded offering of proprietary branded products may not improve our financial performance and may expose us to intellectual property and product liability claims; technological problems may impact our operations; our information security may be compromised; various legal proceedings, third party claims, investigations or audits may adversely affect our business and financial performance; changes in federal, state or local regulations may increase our cost of doing business; and those factors discussed or referenced in our most recent annual report on Form 10-K filed with the SEC, under the heading “Risk Factors” and elsewhere, and any subsequent periodic or current reports filed by us with the SEC. In addition, any forward-looking statements represent our estimates only as of the date such statements are made (unless another date is indicated) and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.

Financial information follows.

STAPLES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollar Amounts in Thousands, Except Share Data)
				January 30,			January 31,
					2010			2009
ASSETS
Current assets:
	Cash and cash equivalents			$	1,415,819		$	633,774
	Receivables, net				1,811,365			1,841,231
	Merchandise inventories, net				2,261,149			2,404,174
	Deferred income tax asset				353,329			281,101
	Prepaid expenses and other current assets				333,105			636,978
			Total current assets		6,174,767			5,797,258
Property and equipment:
	Land and buildings				1,051,391			1,040,754
	Leasehold improvements				1,268,848			1,183,879
	Equipment				2,035,658			1,949,646
	Furniture and fixtures				966,783			926,702
			Total property and equipment		5,322,680			5,100,981
	Less accumulated depreciation and amortization				3,158,147			2,810,355
			Net property and equipment		2,164,533			2,290,626
	Lease acquisition costs, net of accumulated amortization				25,083			26,931
	Intangible assets, net of accumulated amortization				579,923			701,918
	Goodwill				4,084,122			3,780,169
	Other assets				688,906			476,153
			Total assets	$	13,717,334		$	13,073,055
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable			$	2,111,696		$	1,967,597
	Accrued expenses and other current liabilities				1,603,354			1,404,709
	Commercial paper				-			1,195,557
	Debt maturing within one year				67,269			277,691
			Total current liabilities		3,782,319			4,845,554
Long-term debt					2,500,329			1,968,928
Other long-term obligations					579,746			636,142
Stockholders' Equity:
	Preferred stock, $.01 par value, 5,000,000 shares authorized;
		no shares issued			-			-
	Common stock, $.0006 par value, 2,100,000,000 shares
			authorized; issued 896,655,170 shares at January 30, 2010
			and 882,032,761 shares at January 31, 2009		538			529
	Additional paid-in capital				4,379,942			4,048,398
	Accumulated other comprehensive loss				(89,337	)		(494,327	)
	Retained earnings				5,869,138			5,367,341
	Less: treasury stock at cost, 167,990,178 shares at January 30, 2010
	and 166,427,240 shares at January 31, 2009				(3,388,395	)		(3,357,734	)
			Total Staples, Inc. stockholders' equity		6,771,886			5,564,207
			Noncontrolling interests		83,054			58,224
			Total stockholders' equity		6,854,940			5,622,431
			Total liabilities and stockholders' equity	$	13,717,334		$	13,073,055

STAPLES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Dollar Amounts in Thousands, Except Per Share Data)
(Unaudited)
	13 Weeks Ended						52 Weeks Ended
	January 30,			January 31,			January 30,			January 31,
		2010			2009			2010			2009
Sales	$	6,406,074		$	6,173,568		$	24,275,451		$	23,083,775
Cost of goods sold and occupancy costs		4,648,533			4,513,190			17,801,548			16,836,839
Gross profit		1,757,541			1,660,378			6,473,903			6,246,936
Operating and other expenses:
Selling, general and administrative		1,291,187			1,180,620			4,907,236			4,631,219
Integration and restructuring costs		19,742			41,079			84,244			173,524
Amortization of intangibles		24,673			23,839			100,078			70,265
Total operating expenses		1,335,602			1,245,538			5,091,558			4,875,008
Operating income		421,939			414,840			1,382,345			1,371,928
Other income (expense):
Interest income		1,751			5,337			6,117			28,485
Interest expense		(57,578	)		(61,426	)		(237,025	)		(149,774	)
Miscellaneous (expense) income		(1,527	)		(4,332	)		4,457			(7,555	)
Income before income taxes		364,585			354,419			1,155,894			1,243,084
Income tax expense		125,782			65,275			398,783			428,863
Consolidated net income		238,803			289,144			757,111			814,221
Income attributed to noncontrolling interests		4,889			3,098			18,440			8,957
Net income attributed to Staples, Inc.	$	233,914		$	286,046		$	738,671		$	805,264
Earnings Per Share:
Basic earnings per common share	$	0.33		$	0.41		$	1.04		$	1.15
Diluted earnings per common share	$	0.32		$	0.40		$	1.02		$	1.13
Dividends declared per common share	$	0.08		$	-		$	0.33		$	0.33
Weighted average shares outstanding:
Basic		714,919,874			703,204,433			709,744,612			698,409,525
Diluted		727,320,019			714,055,152			721,838,483			711,526,807

STAPLES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Dollar Amounts in Thousands)
			52 Weeks Ended
			January 30,			January 31,
				2010			2009
Operating Activities:
	Consolidated net income, including income from the noncontrolling interests		$	757,111		$	814,221
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization		552,441			548,911
		Non-cash write-down of assets		-			150,081
		Stock-based compensation		174,691			180,652
		Excess tax benefits from stock-based compensation arrangements		(8,763	)		(5,849	)
		Deferred income taxes		(89,753	)		33,370
		Other		(17,177	)		25,239
		Changes in assets and liabilities, net of companies acquired:
		Decrease in receivables		129,137			51,716
		Decrease in merchandise inventories		244,600			177,199
		Decrease (increase) in prepaid expenses and other assets		254,805			(2,679	)
		Increase (decrease) in accounts payable		40,365			(127,051	)
		Increase (decrease) in accrued expenses and other liabilities		71,208			(195,296	)
		(Decrease) increase in other long-term obligations		(24,457	)		35,316
Net cash provided by operating activities				2,084,208			1,685,830
Investing Activities:
	Acquisition of property and equipment			(313,228	)		(378,329	)
	Acquisition of businesses and investments in joint ventures, net of cash acquired			-			(4,381,811	)
	Proceeds from the sale of short-term investments			-			27,019
	Purchase of short-term investments			-			(3	)
Net cash used in investing activities				(313,228	)		(4,733,124	)
Financing Activities:
	Proceeds from the exercise of stock options and the sale of stock under employee stock purchase plans			150,958			148,329
	(Repayments of) proceeds from the issuance of commercial paper			(1,195,557	)		1,195,557
	Proceeds from borrowings			1,211,424			3,679,045
	Payments on borrowings, including payment of deferred financing fees			(945,333	)		(2,206,312	)
	Cash dividends paid			(236,874	)		(231,465	)
	Excess tax benefits from stock-based compensation arrangements			8,763			5,849
	Purchase of treasury stock, net			(30,661	)		(84,961	)
Net cash (used in) provided by financing activities				(1,037,280	)		2,506,042
Effect of exchange rate changes on cash and cash equivalents				48,345			(70,422	)
Net increase (decrease) in cash and cash equivalents				782,045			(611,674	)
Cash and cash equivalents at beginning of period				633,774			1,245,448
Cash and cash equivalents at end of period			$	1,415,819		$	633,774

STAPLES, INC. AND SUBSIDIARIES
Segment Reporting
(Dollar Amounts in Thousands)
(Unaudited)
	13 Weeks Ended						52 Weeks Ended
	January 30,			January 31,			January 30,			January 31,
		2010			2009			2010			2009
Sales:
North American Delivery	$	2,424,758		$	2,460,437		$	9,640,390		$	8,929,924
North American Retail		2,573,714			2,393,942			9,364,190			9,489,510
International Operations		1,407,602			1,319,189			5,270,871			4,664,341
Total sales	$	6,406,074		$	6,173,568		$	24,275,451		$	23,083,775
Business Unit Income:
North American Delivery	$	222,169		$	219,500		$	786,723		$	802,523
North American Retail		245,564			223,353			774,529			769,695
International Operations		58,100			59,522			122,028			153,886
Total business unit income		525,833			502,375			1,683,280			1,726,104
Stock-based compensation		(42,152	)		(46,456	)		(174,691	)		(180,652	)
Integration and restructuring costs		(19,742	)		(41,079	)		(84,244	)		(173,524	)
Impact of wage and hour settlement		(42,000	)		-			(42,000	)		-
Total segment income		421,939			414,840			1,382,345			1,371,928
Interest and other expense, net		(57,354	)		(60,421	)		(226,451	)		(128,844	)
Consolidated income before income taxes	$	364,585		$	354,419		$	1,155,894		$	1,243,084

STAPLES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Consolidated Statement of Income
(Dollar Amounts in Thousands, Except Per Share Data)
(Unaudited)
	13 Weeks Ended
	January 30, 2010												January 31, 2009
	GAAP As Reported		Integration and Restructuring Expenses			Wage and Hour Settlement			Non-GAAP As Adjusted		As Adjusted %		GAAP As Reported		Integration and Restructuring Expenses			Reversal of Non- Cash Charge Related to Tax Planning Strategies			Non-GAAP As Adjusted		As Adjusted %
Sales	$	6,406,074	$	-		$	-		$	6,406,074	100.00	%	$	6,173,568	$	-		$	-		$	6,173,568	100.00	%
Cost of goods sold and occupancy costs		4,648,533		-			-			4,648,533	72.56	%		4,513,190		-			-			4,513,190	73.11	%
Gross profit		1,757,541		-			-			1,757,541	27.44	%		1,660,378		-			-			1,660,378	26.89	%
Operating and other expenses:
Selling, general and administrative		1,291,187		-			(42,000	)		1,249,187	19.50	%		1,180,620		-			-			1,180,620	19.12	%
Integration and restructuring charges		19,742		(19,742	)		-			-	0.00	%		41,079		(41,079	)		-			-	0.00	%
Amortization of intangibles		24,673		-			-			24,673	0.39	%		23,839		-			-			23,839	0.39	%
Total operating expenses		1,335,602		(19,742	)		(42,000	)		1,273,860	19.89	%		1,245,538		(41,079	)		-			1,204,459	19.51	%
Operating income		421,939		19,742			42,000			483,681	7.55	%		414,840		41,079			-			455,919	7.39	%
Interest and other expense, net		57,354		-			-			57,354	0.90	%		60,421		-			-			60,421	0.98	%
Consolidated income before income taxes		364,585		19,742			42,000			426,327	6.66	%		354,419		41,079			-			395,498	6.41	%
Income tax expense		125,782		6,811			14,490			147,083	2.30	%		65,275		14,172			57,000			136,447	2.21	%
Consolidated net income		238,803		12,931			27,510			279,244	4.36	%		289,144		26,907			(57,000	)		259,051	4.20	%
Income attributed to noncontrolling interests		4,889		-			-			4,889	0.08	%		3,098		-			-			3,098	0.05	%
Net income attributed to Staples, Inc.	$	233,914	$	12,931		$	27,510		$	274,355	4.28	%	$	286,046	$	26,907		$	(57,000	)	$	255,953	4.15	%
Earnings Per Share:
Basic earnings per common share	$	0.33	$	0.02		$	0.04		$	0.39			$	0.41	$	0.04		$	(0.08	)	$	0.36
Diluted earnings per common share	$	0.32	$	0.02		$	0.04		$	0.38			$	0.40	$	0.04		$	(0.08	)	$	0.36
Weighted average shares outstanding:
Basic		714,919,874												703,204,433
Diluted		727,320,019												714,055,152

STAPLES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Consolidated Statement of Income
(Dollar Amounts in Thousands, Except Per Share Data)
(Unaudited)
	52 Weeks Ended
	January 30, 2010												January 31, 2009
	GAAP As Reported		Integration and Restructuring Expenses			Wage and Hour Settlement			Non-GAAP As Adjusted		As Adjusted %		GAAP As Reported		Integration and Restructuring Expenses			Non-GAAP As Adjusted		As Adjusted %
Sales	$	24,275,451	$	-		$	-		$	24,275,451	100.00	%	$	23,083,775	$	-		$	23,083,775	100.00	%
Cost of goods sold and occupancy costs		17,801,548		-			-			17,801,548	73.33	%		16,836,839		-			16,836,839	72.94	%
Gross profit		6,473,903		-			-			6,473,903	26.67	%		6,246,936		-			6,246,936	27.06	%
Operating and other expenses:
Selling, general and administrative		4,907,236		-			(42,000	)		4,865,236	20.04	%		4,631,219		-			4,631,219	20.06	%
Integration and restructuring charges		84,244		(84,244	)		-			-	0.00	%		173,524		(173,524	)		-	0.00	%
Amortization of intangibles		100,078		-			-			100,078	0.41	%		70,265		-			70,265	0.30	%
Total operating expenses		5,091,558		(84,244	)		(42,000	)		4,965,314	20.45	%		4,875,008		(173,524	)		4,701,484	20.37	%
Operating income		1,382,345		84,244			42,000			1,508,589	6.21	%		1,371,928		173,524			1,545,452	6.69	%
Interest and other expense, net		226,451		-			-			226,451	0.93	%		128,844		-			128,844	0.56	%
Consolidated income before income taxes		1,155,894		84,244			42,000			1,282,138	5.28	%		1,243,084		173,524			1,416,608	6.14	%
Income tax expense		398,783		29,064			14,490			442,337	1.82	%		428,863		59,866			488,729	2.12	%
Consolidated net income		757,111		55,180			27,510			839,801	3.46	%		814,221		113,658			927,879	4.02	%
Income attributed to noncontrolling interests		18,440		-			-			18,440	0.08	%		8,957		-			8,957	0.04	%
Net income attributed to Staples, Inc.	$	738,671	$	55,180		$	27,510		$	821,361	3.38	%	$	805,264	$	113,658		$	918,922	3.98	%
Earnings Per Share:
Basic earnings per common share	$	1.04	$	0.08		$	0.04		$	1.16			$	1.15	$	0.17		$	1.32
Diluted earnings per common share	$	1.02	$	0.08		$	0.04		$	1.14			$	1.13	$	0.16		$	1.29
Weighted average shares outstanding:
Basic		709,744,612												698,409,525
Diluted		721,838,483												711,526,807

STAPLES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Sales Growth
(Unaudited)
	13 Weeks Ended January 30, 2010
	Sales Growth GAAP	Impact of Local Currency	Sales growth on a Local Currency Basis
Sales:
North American Delivery	-1.5%	-1.0%	-2.5%
North American Retail	7.5%	-3.4%	4.1%
International Operations	6.7%	-13.0%	-6.3%
Total sales	3.8%	-4.6%	-0.8%
	52 Weeks Ended January 30, 2010
	Sales Growth GAAP	Impact of Local Currency	Sales growth on a Local Currency Basis
Sales:
North American Delivery	8.0%	-0.1%	7.9%
North American Retail	-1.3%	0.6%	-0.7%
International Operations	13.0%	0.5%	13.5%
Total sales	5.2%	0.3%	5.5%
This presentation refers to growth rates in local currency so that business results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of Staples' business performance. To present this information, current period results for entities reporting in currencies other than U.S. dollars are converted into U.S. dollars at the prior year average monthly exchange rates.

STAPLES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Segment Schedule of Sales
(Dollar Amounts in Thousands)
(Unaudited)
	52 Weeks Ended
	January 30, 2010		January 31, 2009
	GAAP As Reported		GAAP As Reported		Sales attributed to Corporate Express*		Non-GAAP As Adjusted		Decrease from Prior Year		Decrease in Local Currency
North American Delivery	$	9,640,390	$	8,929,924	$	1,759,234	$	10,689,158	-9.8	%	-9.6	%
North American Retail		9,364,190		9,489,510		-		9,489,510	-1.3	%	-0.7	%
International Operations		5,270,871		4,664,341		1,594,593		6,258,934	-15.8	%	-10.7	%
	$	24,275,451	$	23,083,775	$	3,353,827	$	26,437,602	-8.2	%	-6.6	%
*Corporate Express' sales for 2008 reflect the period February 1, 2008 - July 1, 2008. Prior to being acquired by Staples, Corporate Express' fiscal year was January 1 - December 31. After the acquisition, Corporate Express' fiscal year was changed to coincide with Staples' fiscal year. Accordingly, adjustments have been made to Corporate Express' previously filed financial information to:
a. reflect the change in fiscal periods;
b. convert the results to U.S. dollars;
c. exclude discontinued operations; and
d. convert the results from IFRS to U.S. GAAP.

CONTACT:
Staples, Inc.
Media Contact:
Paul Capelli/Owen Davis, 508-253-8530/8468
or
Investor Contact:
Laurel Lefebvre/Chris Powers, 508-253-4080/4632