Office Depot posts 2nd quarter loss

By Palm Beach Business.com

DELRAY BEACH — Office Depot’s second quarter earnings report was all that had expected: Full of bad news.

The office supply retailing giant said Tuesday that it has lost $2 million, or a penny a share, on revenue of $3.6 billion for the quarter ended June 30.

That compares with profit of $106 million, or 39 cents a share, on revenue of $3.63 billion for the same period a year ago.

Office Depot shares fell 13 cents, or 1.88 percent, to $6.77 in trading on the New York Stock Exchange.

The loss was expected: Office Depot earlier previously announced that sales for the quarter had declined.

Office Depot’s North American retail division had a 6 percent decline in sales, to $1.4 billion. Comparable store sales — a key measure for retailers — fell 10 percent from the year-ago quarter. The division posted an operating loss of $4 million, compared with an operating profit of $99 million a year ago.

The North American business solutions division posted a 5 percent decline in sales, to $1.1 billion.

The international division did report a 13 percent increase in revenue, to $1.1 billion.

“The management team and associates at Office Depot will continue to do everything we can to profitably growth the top line, cut costs, reduce our (capital expenditures), and improve cash flow,” CEO Steve Odland told analysts during a conference call Tuesday morning.

Office Depot is cutting the number of store openings this year and next, reviewing vendors, reducing inventories and offering employees incentives to voluntarily quit the company.