Delray Beach, Fla. — Office Depot is blaming the challenging economic environment and weakening business conditions for a nearly 10 percent drop in same store sales at its North American locations during its second fiscal quarter.
Total sales were down slightly for the three-month period ended June 28, the office supply chain said.
Sales trends worsened late in the quarter, compelling the company to lower its earnings before income tax margin forecast from a decline of 200 basis points to a 400 to 450 basis-point drop.
The retailer said it is disappointed by the preliminary results, which were driven by a “very difficult business environment,” but will continue to implement its strategic plans and margin expansion initiatives.
The company said it expects the business environment to remain difficult through the balance of the year, but anticipates its profit margins to improve in the second half.
Office Depot will release its second quarter earnings on July 30.