Office Depot Reports Loss, Lower Sales
By Staff -- TWICE, 8/4/2008
DELRAY BEACH, FLA. — Office Depot reported a 1 percent sales drop and a $2 million loss for the second quarter, as well as softness in its North American retail division.
Total company sales for the second quarter, which ended June 28, decreased 1 percent to $3.6 billion. Office Depot's net loss of $2 million in the second quarter of 2008 is in comparison to earnings of $106 million in the same period of 2007.
In its North American retail division, second-quarter sales were down 6 percent to $1.4 billion. Comp-store sales in the 1,178 stores here that have been open for more than one year fell 10 percent in the quarter.
The North American retail division had an operating loss of $4 million in the quarter, a decline from the operating profit of $99 million in last year's quarter.
Persistent weakness in Florida and California continued to weigh heavily on results; however, the sales decline in these two states is consistent with what has been reported over the past few quarters, the retailer said.
During the second quarter, Office Depot opened six new stores, closed one and relocated three stores, bringing the total store count to 1,272; the chain also remodeled two stores in the quarter.
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