Office Depot Inc. (ODP), one of the leading suppliers of office products and services, reported another dismal quarter, as the fall in its top-line continues. Total revenue for the third-quarter declined 17.2% year over year to $3,029.2 million.

Consequently, gross profit slipped 16%, despite a 17.6% drop in cost of goods sold. Even a 15.8% fall in operating expenses, excluding one-time items, could not halt the quarterly loss.

The company delivered a loss of 8 cents a share, sharply down from a penny loss posted in the prior-year quarter, but fared better than the Zacks Consensus Estimate of a loss of 10 cents.

On a reported basis Incorporatedluding one-time items, quarterly loss widened to $1.51 per share from a loss of 2 cents recorded in the year-ago quarter.

North American Retail division’s revenue dipped 18.4% to $1,288.3 million driven by 14% drop in comparable-store sales and opening of 117 fewer stores in the quarter. However, operating profit more than doubled to $35.1 million due to rise in product margins for the fifth consecutive quarter, closing of less profitable stores and lower operating expenses.

North American Business Solutions division’s revenue slipped 16.5% to $880.4 million due to a decline in the number of consumer transactions. Operating profit dipped 45.4% to $21.3 million on falling sales and product margins, and rising costs.

International division’s revenue fell 16% to $860.6 million, whereas operating profit fell 4.7% to $34.2 million due to lower operating expenses.

Office-supply retailers have been grappling with sluggish demand for big-ticket items like furniture and computers, as consumers and smaller businesses cutback on their spending in the downturn.

The operator of office supply stores under brand names, such as Office Depot, Foray, Ativa, Break Escapes, Worklife, and Christopher Lowell, generated free cash flow of $140.5 million during the quarter, after reporting a negative free cash flow of $14.3 million in the previous quarter.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (OCLR) Oclaro Posts Earnings In-Line In The QuarterOclaro Inc. (OCLR) recently reported revenues of $85.1 millionin the first quater of 2010, up...
2. (ODP) Office Depot Introduces Flu KitOffice Depot Inc. (ODP), the global supplier of a range of office products and services,...
3. (HIW) Highwoods Properties Signs New Office LeaseHighwoods Properties, Inc. (HIW), a real estate investment trust (REIT), has recently signed a leasing...
4. (HD) Home Depot Joins Martha Stewart Living Omnimedia in New Product LineThe Home Depot Inc (HD), the world’s largest home improvement specialty retailer, has recently announced...
5. (HD) Home Depot Gets Martha Stewart’s TouchHome Depot Inc. (HD) recently signed a deal with diversified media and merchandising company Martha...
6. (MS) Morgan Stanley Exits its Shanghai OfficeThe real-estate investment arm of US bank Morgan Stanley (MS) recently agreed to sell its...

Search Posts by Tag: ODP | Office Depot | Services | Specialty Retail Other

RSS Feeds by Tag: ODP | Office Depot | Services | Specialty Retail Other |

Other Posts by: vitalstocks | RSS Feed for this author