Office Depot moves to 1Q loss, but tops Street
BOCA RATON, Fla. — Office Depot Inc. said Tuesday that it moved to a first-quarter loss because of charges for a restructuring that included facility closings, but adjusted results beat Wall Street’s estimates.
The office supply retailer recorded a loss of $54.7 million, or 20 cents per share, compared with a year-ago profit of $68.8 million, or 25 cents per share.
Excluding $120 million in charges, earnings in the latest quarter were $27 million, or 10 cents per share. Revenue slid 18 percent to $3.23 billion from $3.96 billion.
Analysts polled by Thomson Reuters expected a loss of 10 cents per share on revenue of $3.26 billion. Analyst estimates typically exclude one-time items.
The charges included costs for lease accruals, severance and inventory write-down related to some facility closings. The actions were part of a strategic business review enacted during the quarter, but Office Dept warned that it will likely record additional charges of approximately $110 million over the course of the year for more items related to the review and legacy 2005 initiatives.
The company previously announced that it would close approximately 9 percent of its North American stores and cut 2,200 jobs. It also plans to open fewer locations next year.
Boca Raton, Fla.-based Office Depot has seen its sales and stock price slide as customers, especially small-business owners, cut spending because of the recession. But the retailer said the 16 percent decline in its North American retail unit’s first-quarter sales was also the result of less aggressive ad promotions for some categories.
The North American Business Solutions division’s sales fell 17 percent to $914 million on a pullback in customer spending, while the international division’s revenue slumped 24 percent to $875 million on the stronger dollar, higher costs and increased promotions.
Office Depot, which has about 42,000 workers, shut 107 stores and relocated one store during the quarter. Its total store count was 1,160 at the end of the quarter.
Related News
Williams-Sonoma raises full-year, third-quarter adjusted earnings forecastsAugust 26th, 2009 Williams-Sonoma ups full-year adj. profit outlookSAN FRANCISCO — Williams-Sonoma Inc.
Harman International posts losses for 4Q and full year but beats Wall St. estimatesAugust 20th, 2009 Harman International posts 4Q, full-year lossesSTAMFORD, Conn. — Harman International Industries Inc.
Home Depot 2nd-quarter profit falls on closing of Expo business, ongoing housing weaknessAugust 18th, 2009 Home Depot 2Q profit drops on Expo closingsATLANTA — Home Depot Inc. said Tuesday that its fiscal second-quarter profit fell 7 percent, as the nation's biggest home-improvement retailer shuttered its Expo business and continued to be pinched by the recession.
Agilent posts 3Q loss on charges, but adjusted profit top estimates, issues strong outlookAugust 17th, 2009 Agilent Tech posts better-than-expected 3Q resultsSANTA CLARA, Calif. — Testing instrument maker Agilent Technologies Inc.
Electronic Arts posts larger 1st-quarter loss, adjusted results beat expectationsAugust 4th, 2009 Electronic Arts 1Q net loss widens as revenue downNEW YORK — Electronic Arts says its fiscal first-quarter loss was larger than a year ago, dragged by lower revenue. But adjusted results have surpassed expectations thanks to strong launches of games such as "The Sims 3" and "EA Sports Active."
Redwood City, Calif.-based Electronic Arts Inc.
Shares of Weyerhaeuser, which beat 2nd-quarter estimates, rise after analyst hikes estimatesAugust 3rd, 2009 Weyerhaeuser shares rise as earnings beat estimateNEW YORK — Shares of Weyerhaeuser Co. rose Monday after the major U.S.
LSI Corp.'s 2nd-quarter loss widens on charges, beats analysts' expectationsJuly 30th, 2009 LSI 2Q loss widens but beats Wall Street estimatesMILPITAS, Calif. — Chip maker LSI Corp.
MetLife reports 2nd-quarter loss of $1.43 billion as investment income declinesJuly 30th, 2009 MetLife posts 2Q loss as investment income fallsNEW YORK — MetLife Inc. said Thursday it lost $1.43 billion in the second quarter as it booked losses on its investments.
Flextronics drops to 1st-quarter loss from year-ago profit on restructuring chargesJuly 29th, 2009 Flextronics plunges to 1Q loss, still tops outlookNEW YORK — Singapore-based contract electronics manufacturer Flextronics International Ltd. plunged to a loss in its fiscal first quarter on restructuring and other charges, but adjusted results still beat expectations.
USEC, Interpublic, Office Depot, SPSS, Textron are among big market movers TuesdayJuly 28th, 2009 USEC, Interpublic, Office Depot are big moversNEW YORK — Stocks that moved substantially or traded heavily Tuesday on the New York Stock Exchange and Nasdaq Stock Market:
NYSE:
USEC Inc., down $2.14 at $4.05
The Department of Energy denied a $2 billion loan guarantee the company needed to finance the construction of an Ohio uranium plant. Interpublic Group of Cos., down 78 cents at $5.41
The advertising and marketing conglomerate said its profit tumbled by more than three-fourths in the second quarter as sales slid.
FedEx posts widened 4th-qtr loss, but adjusted results top Wall Street's expectationsJune 17th, 2009 FedEx posts loss, but adjusted results top viewNEW YORK — FedEx says it posted a bigger fiscal fourth-quarter loss, weighed down by hefty one-time charges, but adjusted results came in well above expectations on Wall Street. The company said Wednesday it lost $876 million, or $2.82 per share, compared with a loss of $241 million, or 78 cents per share a year ago.
Home Depot says full-year earnings from continuing ops may beat previous forecastJune 10th, 2009 Home Depot raises full-year earnings guidanceCHICAGO — Home Depot Inc. said Wednesday that its full-year earnings from continuing operations may come in better than previously forecast, thanks to a combination of individual homeowners spending more and stronger overall sales.
Tyson Foods posts fiscal 2nd-quarter loss on some charges and lower beef salesMay 4th, 2009 Tyson posts fiscal 2Q loss on some chargesSPRINGDALE, Ark. — Tyson Foods, the world's largest meat producer, says it posted a bigger-than-expected loss in its fiscal second quarter on charges and declining beef sales.
Office Depot posts 1st-quarter loss on charges, but adjusted results top analyst estimatesApril 28th, 2009 Office Depot moves to 1Q loss, but beats estimateCHICAGO — Office Depot Inc. surprised Wall Street on Tuesday when it reported that, excluding its cost-cutting efforts and other one-time events, its first-quarter profit was much better than expected.
Supervalu loses $201M in 4th-quarter on charges, but adj. results beat analysts' estimatesApril 23rd, 2009 Supervalu loses $201 million in 4th-quarterMINNEAPOLIS — Supervalu Inc., one of the nation's largest grocery chains, says it lost $201 million in its fiscal fourth-quarter mostly because of hefty goodwill and asset impairment charges. Adjusted results managed to top analysts' estimates.
Loading ...