Soft Retail Sales Negatively Impact Office Depot Q2 Results

Negatively impacted by a decline in same-store sales and lower sales in its CompuCom division, Office Depot reported a drop in revenue in the second quarter.

For the quarter ended June 29, total sales were $2.6 billion, down 2% from the comparable quarter the previous year. Net loss for the quarter was $24 million, or $(0.04) per diluted share, compared with net income of $19 million, or $0.03 per diluted share, in the second quarter of 2018.

Sales in the Business Solutions Division (BSD) were up 2% to $1.3 billion, while sales in Office Depot’s Retail Division were down 4% to $1 billion. The company’s CompuCom Division, which handles IT services, was down 7% to $258 million.

“This quarter was a compelling demonstration of how we are implementing our strategy and utilizing our B2B platform to serve our business customers,” said Gerry Smith, CEO of Office Depot. “Our strong operating results were driven by growth in our BSD division and improving performance at our CompuCom division. Our strategic focus on our B2B businesses, which consists of our BSD and CompuCom divisions, generated more than 60% of our revenue and more than 90% of our division level operating income in the second quarter.”