Office Depot swings to profit in Q1

Boca Raton, Fla. Office Depot reported Tuesday that it earned $20 million in first quarter 2010, compared with a loss of $55 million in the year-ago period.

Total sales for the quarter ended March 27 were $3.1 billion, down 5% from the prior year.

By division, first-quarter sales for the North American Retail Division dropped 6% to $1.3 billion, attributed to the shuttering of 120 stores in 2009 as part of the restructuring. Same-store sales dipped 1%.

During first quarter 2010, Office Depot closed seven stores and opened four, bringing the total store count for North America to 1,149 as of March 27.

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 international sales in local currency decreased 5%.

“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 CFO.

Office Depot currently operates 1,587 stores worldwide.