Office Depot Profit Meets Estimates, But Sales Slightly Short

By Ciara LinnaneMarketWatch Pulse

Office Depot Inc. said Tuesday it had a net loss of $58 million, or 11 cents a share, in the second quarter, narrower than the $190 million loss, or 36 cents a share loss, reported in the year-earlier quarter. Adjusted per-share earnings came to 6 cents, matching the FactSet consensus. Sales fell 3% to $3.44 billion, slightly below the FactSet consensus of $3.48 billion. Same-store sales at the company's North American division rose 1% in the quarter. "While total company sales declined compared to prior year, driven primarily by planned store closures and foreign currency translation, continued success in the consolidation of our U.S. retail store portfolio and increased operational effectiveness drove positive quarterly same-store sales growth for the first time in many years," Chief Executive Roland Smith said in a statement. Office Depot, which agreed to be acquired by rival Staples Inc. in February, said it now expects full-year sales to be lower than 2014, mostly due to store closures, the strong dollar and disruption caused by the pending merger. Shares were not yet active in premarket trade, but are down 8% in the year so far, while the S&P 500 has gained about 2%.

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