Office Depot Tanks on First-Quarter Miss
NEW YORK (
) --
Office Depot
(ODP) - Get ODP Corporation Report
missed both profit and revenue forecasts in the first-quarter, sending shares pluging in morning trading.
The office-supply retailer also forecast a second-quarter loss. Shares are tanking 14% to $7.71, topping the New York Stock Exchange's list of biggest decliners.
During the quarter, Office Depot earned $20 million, or 7 cents a share, compared with a loss of $54.7 million, or 20 cents, in the year-ago period. While Office Depot swung into profit, it fell short of Wall Street's outlook by a penny.
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Sales dropped 5% to $3.07 billion, lower than the $3.14 billion analysts predicted. North America same-store sales slipped 1%.
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Despite these disappointing results, Office Depot is on a trajectory toward recovery, J.P. Morgan analyst Christopher Horvers said. Gross margin grew to 29.7% from 28.2%. International profit also more than doubled.
-- Reported by Jeanine Poggi in New York.
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