Office Depot profit rises despite sales decline

Store closures led Office Depot sales to decline in the first quarter, but the retailer still reported a sizable bump in profit.

The company reported a net profit of $45 million, compared with a loss of $109 million in the year-ago period.

"As expected, we experienced sales declines compared to prior year, driven primarily by planned store closures and foreign currency translation," said CEO Roland Smith.

Sales fell 11% to $3.88 billion from $4.35 billion, missing estimate, with a 9% decline in North America and a 20% drop in international sales.

​The office supply retailer said excluding non-recurring items, including costs associated with the planned acquisition of Office Depot by Staples Inc., adjusted earnings per share were 13 cents, matching the FactSet consensus.



Office Depot said it continues to expect its acquisition by Staples to close by the end of the year.