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Office Depot Cuts Fourth-Quarter Same-Store Sales Guidance

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Office Depot

(ODP) - Get ODP Corporation Report

expects "negative" fourth-quarter same-store sales, as the performance in its North American retail division for October and early November has been on a downward trend.

The Delray Beach, Fla., company said fourth-quarter same-store sales could be in the "negative mid-single digit range" if weak sales in laptops, desktops, monitors and printers, as well as higher warehouse costs, continue.

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Office Depot previously expected flat same-store sales for the fourth quarter.

In addition, the office products retailer said it will record a fourth-quarter charge of $2 million to reorganize its call center operations. Starting in the fourth quarter, the company will incur expenses totaling $4 million during the next 12 months, mainly to cover employee transition costs. The company also plans to spend $22 million to upgrade its technology.

Shares of Office Depot recently fell 81 cents, or 10.7%, to $6.75 in

New York Stock Exchange

composite trading.