OfficeMax Q1 profit falls 53%

Naperville, Ill. -- OfficeMax said Thursday that its net income dropped 53% in the first quarter.



Net income fell to $11.9 million from $25.4 million. Revenue fell 2.8% to $1.86 billion, though it beat analysts' estimates



The company blamed bad weather, store discounts and "an unfavorable product sales mix shift" in the technology department. Revenue from direct sales to business customers fell more steeply than revenue in stores.



The chain was challenged by operating expenses. CEO Ravi Saligram said he was disappointed with the results and that the company had put programs in place to cut expenses to last year's levels.



“We are disappointed with our start to the year,” Saligram said. “In recognition of current trends and upon a deeper evaluation of our existing capabilities, we have put in place strong actions, including significant cost mitigation programs to bring our expenses in-line with last year. We believe these actions should help drive improved performance."



Mexico was a bright spot. Though OfficeMax closed six stores in the United States and plans to close about nine more this year, it expects to open eight to 10 in Mexico.