Office Depot ( ODP) on Wednesday reiterated the grim second-quarter forecast it issued last month, saying it has seen no evidence the economy is turning around.

The office supply retailer said that excluding an accounting change, it expects to earn 16 cents to 18 cents a share in the quarter. Analysts surveyed by First Call were expecting 18 cents, on average. The company still expects second-quarter same-store sales to fall by 3% or 4%, reflecting weakness in its technology and furniture segments.

"We are not yet seeing signs of any significant economic improvement in either North America or Europe," the company said. "However, we are encouraged by progress in our North American retail business, even though comp sales remain negative. "

The company said second-quarter retail gross margins are being squeezed in North America, both by discounting and higher occupancy expense relative to sales.

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