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Office Depot Q3 Retail Comps Slide

For the third quarter, as comparable store sales in the retail divisions were down 5%, Office Depot posted net income from continuing operation of $60 million, or 11 cents, versus $98 million, or 19 cents, in the year-prior period.

Adjusted income from continuing operations was $71 million, or 13 cents per diluted share, versus $74 million, or 14 cents per diluted share, in the year-before period. Operating income was $105 million in the quarter, flat with the period in the year earlier

Total sales in the quarter were $2.89 billion versus $2.62 billion in the comparable quarter the previous year.

In the Retail Division, comparable store sales fell 5% year over year while sales slipped to $1.25 billion from $1.33 billion in the year-before period. Division operating income in the quarter also fell year over year to $70 million from $82 million.

Gerry Smith, Office Depot’s CEO, said the company was also pleased with the 6% increase in sales in the retailer’s Business Solutions Division.

“The investments that we are making in building our services capabilities are also continuing to pay off as service revenues again grew double digits in both our BSD and Retail divisions,” he said. “Overall, we are making great progress on our transformation and remain confident that we have the right strategy in place to drive sustainable, profitable growth in the future.”