OFFICE-DEPOT Q3 LOSS OF $413M

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OFFICE-DEPOT Q3 LOSS OF $413M

 user 2009-10-30 at 12:45:18 pm Views: 43
  • #22851

    http://www.twice.com/article/366787-Office_Depot_Reports_413M_Q3_Loss.php
    OFFICE-DEPOT Q3 LOSS OF $413M
    Boca
    Raton, Fla. – Office Depot reported a $413 million net loss and lower
    sales in its fiscal third quarter which ended Sept. 26.The net loss of
    $413 million in the third quarter compares with a net loss of $7
    million in the same period of
    2008.                                                

    Third-quarter
    sales decreased 17 percent to $3 billion compared with the same quarter
    last year. Excluding the impact of foreign currency translation on the
    international division, total company sales were down 15 percent.In the
    North American retail division third-quarter sales were $1.3 billion,
    down 18 percent compared with the same period last year, due in part to
    having 117 fewer stores open in the third quarter of 2009 vs. the prior
    year period.Comparable-store sales in the 1,144 stores in the U.S. and
    Canada that have been open for more than one year decreased 14 percent
    for the third quarter compared with the prior year period. Consistent
    with previous periods, the decrease in comp-store sales was driven by
    macroeconomic factors as consumers and small business customers
    continued to hold back their spending, especially in large ticket
    categories, and the division’s commitment to proactively reduce
    unacceptable margin promotions in select categories, the company said.

    The
    North American retail division had an operating profit of $35 million
    for the third quarter, compared with $12 million reported in the same
    period of the prior year. The operating profit improvement was driven
    by a number of factors including higher product margins for the fifth
    straight quarter, a comparative benefit from closing underperforming
    stores, lower asset impairment charges compared with last year, and
    reduced operating expenses. These positive factors were partially
    offset by the unfavorable impact the sales volume decline had on gross
    margin and operating expenses, the retailers said.

    During the
    third quarter, Office Depot closed one store, opened one and relocated
    three stores, bringing the total store count for North America to 1,158
    as of Sept. 26.The North American business solutions division had
    third-quarter sales of $880 million, down 16 percent compared with the
    same period last year. The division reported an operating profit of $21
    million for the third quarter of 2009 compared with $39 million for the
    same period of the prior year.

    The international division
    reported sales of $861 million in the third quarter, a decrease of 16
    percent compared with the same period last year, while sales in local
    currency decreased by 9 percent.The unit’s operating profit was $34
    million in the third quarter of 2009 compared with $36 million in the
    same period of the prior year. The change in the division’s operating
    profit for the third quarter of 2009 resulted as the flow through
    impact of lower sales levels was almost completely offset by lower
    operating expenses. Additionally, changes in foreign exchange rates,
    driven by a stronger U.S. dollar, unfavorably impacted operating profit.