Office Depot earnings, sales derailed by stalled Staples merger

Office Depot put the blame for disappointing first-quarter financial results on its delayed buyout by Staples.



"The protracted regulatory review of the pending Staples acquisition continues to have a substantial disruptive impact on our business," stated Roland Smith, chairman and CEO, Office Depot. “Our North American Business Solutions Division and International Division are more impacted by this disruption and accordingly, both failed to meet our sales and profit expectations this quarter.”



Office Depot said it expects a decision on the merger, in the works for over a year now, by May 10.



The company net income of $46 million in the three months ending March 26, less than analysts expected, compared with $45 million in the year ago period.



Revenue fell 9% to $3.54 billion in the period, which also missed Street forecasts.



Sales at Office Depot’s North American retail segment, its largest division by sales, fell 8.9% to $1.51 billion.