Office Depot suffers wide 1Q loss

BOCA RATON, Fla. Office Depot announced that total company sales for the first quarter decreased 19% to $3.2 billion. The company reported a net loss of $55 million in the first quarter of 2009, compared to earnings of $69 million in the same period of 2008. The loss per share on a diluted basis was 20 cents for the quarter, versus earnings per share of 25 cents in the first quarter of 2008.

First quarter 2009 sales in the North American retail division were $1.4 billion, down 16% compared to the same period last year. Comparable-store sales in the 1,138 stores in the U.S. and Canada that have been open for more than one year decreased 17% for the first quarter. While most of the decline can be attributed to macroeconomic factors as consumers and small business customers reduced their spending, especially on large ticket items like furniture and computers, the decision to be less aggressive with advertising promotions in certain categories also contributed to the sales decrease, Office Depot reported.