DELRAY BEACH, FLA. (
) -- As if corporate America hadn't already caused enough troubles, the decline in businesses purchasing office supplies has resulted in
posting a bigger-than-expected loss in the second quarter.
During the quarter, the company recorded a loss of $82 million, or 31 cents a share, compared with a loss of $2 million, or 1 cent a share, in the year-ago period.
Excluding charges, Office Depot actually lost 22 cents a share, far worse than the 12 cent loss analysts expected.
Sales sank 22% to $2.8 billion, while same-store sales dropped 18%. North American sales dropped 21%, while international sales tanked 25% to $830 million.
"International is clearly lagging the United States, and this division drove the earnings miss, but the stock's performance in the second half of 2009 is more dependent on a sequential recovery in the U.S," J.P. Morgan analyst Christopher Horvers wrote in a note on Tuesday.
Office Depot is closing about 9% of its North American stores and cutting 2,200 jobs. It also plans to open fewer locations next year.
In June, the office supply retailer said it was selling a $350 million stake in the company to the private equity firm BC Partners, giving the firm a 20% stake in the company.
--Reported by Jeanine Poggi in New York.
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