By John Critchley & Christopher Yip
Staples (SPLS) missed first quarter earnings estimates last Thursday, coming in at 28 cents per share, short of the 32 cents per share expectations. To dampen last Thursday?s proceedings even further, management added a dismal 2011 outlook, lowering guidance for the rest of the year.
The stock gapped down in the premarket, plummeting from $19.65 to $16.70, a free fall of 15%. Shares of SPLS continued as low as $16.43 and even dragged OfficeMax (OMX) and Office Depot (ODP) lower, pulling them down 7%.
There is now a thesis gaining steam among some market watchers that the business model of these office retailers is no longer functional in the ?internet age?. This is not a new thesis, others have voiced the opinion and analysis on the diminishing importance of brick-and-mortar businesses including those of Best Buy (BBY) and Barnes and Noble (BK).
As they
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