Office Depot posts $82 million Q2 loss
Boca Raton, Fla. Office Depot reported Tuesday that the company posted a loss of $82.6 million for the second quarter ended June 27, from a $2 million loss in the year-ago period.
The bigger-than-expected quarterly loss is attributed to a dramatic 22% drop in sales, to $2.82 billion. Unlike the first quarter, the sales-volume decline outpaced the benefits from cost-cuts.
The company has closed stores, laid off workers, shuttered distribution centers and trimmed capital spending. In the latest quarter, operating expenses, adjusted for charges, fell by $143 million.
During the second quarter, Office Depot closed five stores, opened three and relocated one store. Same-store sales at U.S. and Canadian stores fell 18%. Its turnaround plan calls for closing about 9% of its North American stores and cutting 2,200 jobs. It also plans to open fewer locations next year.
Last month, Office Depot, which has posted just one profitable quarter over the past six, received a $350 million investment from London-based private-equity firm BC Partners, relieving some liquidity concerns. It said it continues to pursue other internal sources of liquidity.