Office Depot sales decline 9%

Office Depot has announced results for the third quarter ended 26 September, 2015, with total reported sales $3,7-billion compared to $4,1-billion in the third quarter of 2014, a decrease of 9%.“We delivered strong operating results in the third quarter, despite the continued disruption related to the pending acquisition by Staples,” said Roland Smith, chairman and CEO of Office Depot. “Compared to the prior year period, third quarter adjusted operating income increased almost 30% driven by North American Retail same-store sales growth of 3%, and substantial synergies and efficiencies generated from the integration of Office Depot/OfficeMax and our European restructuring. Planned store closures and foreign currency translation continue to be the primary causes of lower total company sales versus last year.”

Smith added, “We are working with the regulatory agencies to clear the pending acquisition by Staples, and expect to close the transaction in late 2015 or early 2016.”

Retail Division sales were $1,6-billion in the third quarter of 2015, a decline of 7% compared to the prior year period, primarily due to planned store closures in the twelve months through 26 September, 2015. Same-store sales increased 3%, driven largely by transferred sales from closed stores and increased operational effectiveness, including a strong back-to-school season program.

Business Solutions Division sales were $1,4-billion in the third quarter of 2015, a decline of 6% compared to the prior year period. Sales declined 5% in constant currency, and were lower in both the contract and direct channels. The sales decline was primarily due to the scheduled transition out of a legacy OfficeMax buying arrangement, lower sales in Canada, disruption related to the pending acquisition by Staples, and lower customer order fill rates attributable to merger integration activities.

International Division sales were $0.6-billion in the third quarter of 2015, a decline of 19% compared to the prior year period, primarily due to the negative impact of foreign currency translation. International sales declined 5% in constant currency primarily due to competitive pressures, sales force vacancies caused by our European restructuring, and disruption related to the pending acquisition by Staples.

Source: office-times.com

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