OFFICE DEPOT WARNS ON SALES

[Anonymous]

Office Depot warns on sales
NEW
YORK DEC 07 – Office Depot Inc the No. 2 U.S. office supply chain, said
on Tuesday sales would remain challenging in early 2008 and that
second-quarter same-store sales could be close to flat.The retailer
also said in a regulatory filing that it sees sales at its North
American Business Solutions unit beginning to improve on a
year-over-year basis in the first half of 2008.Last week the company
said it expected fourth-quarter sales and earnings to fall as
housing-related struggles spread into more of its markets.In order to
lure the North American small business owners who are among its key
customers, Office Depot said it would extend lower entry price points
to them.The company also said it would offer a low price guarantee that
includes matching competitors’ prices on identical products, and it
disclosed plans to expand its private label brand.Sales at office
supply chains, including industry leader Staples Inc , have ebbed in recent quarters as slowing job
growth, the weak U.S. housing sector and credit market worries have led
many small businesses to cut spending.Shares of Office Depot, which
have plunged 65.6 percent in the last year, were down 19 cents, or 1.35
percent, to $13.90 in midday trading on the New York Stock Exchange.

[Author]

December 19, 2007 at 4:09 PM