Office Depot Loss Narrows; Revenues Disappoint
Revenues decreased about 4% to $2.7 billion from $2.8 billion, and were slightly lower than analysts' expectations of $2.74 billion. Comparable store sales in the 1,132 stores in the U.S. and Canada that have been open for more than one year decreased 1% for the second quarter, compared to the prior year period.
"Our second quarter operating results exceeded our expectations due to strong execution in North American Retail, North American Direct and the International Division," said CFO Mike Newman. "We're pleased that these results include year-over-year gross profit margin improvement, marking the fourth consecutive quarter of such improvement."
Office Depot shares jumped nearly 5% in premarket trading.