Office Depot sees improvement in Q1 results

BOCA RATON, Fla. Office Depot announced that total company sales for the first quarter of 2010 were $3.1 billion, a 5% decrease compared with the first quarter of 2009.

The company reported earnings, after preferred stock dividends, of $20 million in the first quarter of 2010, compared with a loss of $55 million in the first quarter of 2009. Earnings per share were 7 cents for the quarter, versus a loss per share of 20 cents in the same period one year ago.

“Our first quarter operating results exceeded our expectations due primarily to a stronger than anticipated performance for the second consecutive quarter by our international division,” said Mike Newman, Office Depot’s chief financial officer. “We’re pleased that these results include year-over-year gross profit margin improvement, marking the third consecutive quarter of such improvement.”

First quarter 2010 sales in the North American retail division were $1.3 billion, a decrease of 6% compared with the same period last year, mostly due to closing 120 stores in 2009 as part of the restructuring, according to the company. Comparable-store sales in the 1,133 stores in the U.S. and Canada decreased 1% for the first quarter compared with the prior-year period.

First quarter 2010 sales in the North American business solutions division were $831 million, a decrease of 9% compared with the same period last year, Office Depot reported.

Office Depot reported that first quarter 2010 sales in the international division were $894 million, an increase of 2% in U.S. dollars compared with the same period last year. First quarter sales in local currency decreased by 5% due primarily to a decline in the number of customer transaction counts.