Office Depot Q2 Sales, Profit Grow

DELRAY BEACH, FLA.— Riding high on its fifth consecutive quarterly improvement in North American comp-store sales, Office Depot said it increased both North American sales and operating profit during the second quarter.

North American retail sales edged up 1 percent in the second three months, ended June 29, hitting $1.29 billion, up from $1.28 billion in the same three months last year. Comp-store sales declined 1 percent, driven by a 12 percent decline in technology products. However, the decline was less than the comparative three months in 2001.

North American operating profit climbed about 26 percent, reaching $91.8 million, up from $68 million in the year-ago second three months. For the six months, North American segment sales also grew by 1 percent, reaching $2.92 billion, up from $2.90 billion in the second quarter of 2001. Segment operating profit rose to $215.4 million, up from $144.2 million in the same six months last year.

Office Depot overall sales in the second quarter increased 4 percent, to $2.64 billion, up from $2.55 billion year over year.

Overall operating income for the second three months rose 15 percent, hitting $92.7 million, up from $80.5 million in the same three months in 2001. Net income reached $56.9 million in the period, compared with $42 million the previous year.

For the six months overall at Office Depot, sales increased 2 percent, to $5.7 billion, up from $5.6 billion the previous period.

Company operating income grew 45 percent during the first half, to $256.6 million, compared with $177.4 million in the same six months last year. Net income rose to $159.7 million in the six months, up from $98.3 million in the first half of 2001.