Weaking economy to hit Office Depot's bottom line

DELRAY BEACH — Office Depot Inc. said Wednesday that the weakening economy will cut into sales and earnings for the fourth quarter.

The company reported last month that the housing slump in key markets, including Florida and California, was responsible for weak North American sales during the third quarter, which declined by 9 percent.

Office Depot said the effects of the slump appear to be spreading to other U.S. markets, creating additional pressure on sales and margins. Further, since inventory purchases are down due to lower sales and disciplined inventory management, fourth quarter vendor program support levels are currently expected to be about $70 million lower than last year.

Office Depot will release fourth quarter earnings on Feb. 26, with a conference at 9 a.m.

Office Depot will observe a quiet period beginning Dec. 28 and extending to Feb 26. It will not have discussions with the “investment community” during that time.

Office Depot shares fell $1.95, or 11.48 percent, to $1.95 during the day.