Office Depot Closes 20 Stores in Q1, 2015

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Office Depot Closes 20 Stores in Q1, 2015

 news 2015-05-05 at 10:24:11 am Views: 313
  • #42463

    Office Depot Closes 20 Stores in Q1, 2015
    By Emon Reiser

    The Boca Raton-based office supply retailer continued its plans to downsize in Q1 with 20 store closures during the quarter, ending with 1,725 locations in North America.

    "As expected, we experienced sales declines compared to prior year, driven primarily by planned store closures and foreign currency translation," said Office Depot CEO and Chairman Roland Smith in an earnings release Tuesday.

    Its results for the first quarter:

    • Revenue: $3.88 billion, down 10.8 percent from $4.35 billion reported in the first quarter of 2015.
    • Net income: $45 million, up from a loss of $108 million in the year-ago quarter.
    • Earnings per share: 8 cents, up from a loss of 21 cents in the year-ago quarter.

    Staples, the largest office supply retailer in the U.S., entered a deal to acquire the Boca Raton-based company for $6.3 billion on Feb. 4. The deal is still subject to approval from the Federal Trade Commission as the agency examines the possibility of a monopoly forming after the purchase.

    Before the open of the market Tuesday, Office Depot's stock was up less than a percent, or 6 cents, to $9.38 a share. The stock reached a 52-week high of $9.77 on Feb. 6. Its 52-week low was $4.26 on Oct. 15.

    Office Depot expects its sales to be lower this year than they were in 2014. They will not host an earnings call.

    “Regarding the pending acquisition by Staples, the regulatory review process is progressing well and we continue to anticipate this transaction will close by the end of 2015," Smith said in the earnings release.