UPDATE: Office Depot Posts In-Line Q2 Loss, Shares Gain
Office Depot (NYSE: ODP) reported in-line loss for the second quarter and lifted its outlook.
The Boca Raton, Florida-based company posted a quarterly loss of $190 million, or $0.36 per share, versus a year-ago loss of $64 million, or $0.23 per share. Excluding certain items, it posted a loss of $0.02 per share, versus a year-ago loss of $0.03 per share. However, analysts were expecting a loss of $0.02 per share.
Its sales rose 59% to $3.84 billion, versus analysts' estimates of $3.81 billion. However, sales declined 2% on a pro forma basis in the quarter.
Office Depot's selling, general and administrative expenses increased 54% to $863 million. Its merger, restructuring and other operating expenses jumped to $103 million in the period.
Office Depot's sales in North American retail division rose 55% to $1.5 billion, while sales fell 5% on a pro forma basis. The division's same-store sales fell 3%.
The company's sales in the business solutions unit jumped 91% to $1.49 billion, while sales fell 1% on a pro forma basis. International division sales rose to $0.8 billion from $0.7 billion, while sales fell 5% on a pro forma basis.
"During the second quarter, our team executed exceptionally well, which enabled us to deliver merger synergies more quickly than anticipated,” said Roland Smith, chairman and chief executive officer of Office Depot.
Office Depot projects 2014 adjusted operating income of not less than $200 million, versus its earlier forecast of not less than $160 million.”
Office Depot shares gained 3.72% to $5.30 in pre-market trading.
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