Office supply retailer
said its second-quarter profits increased 15% despite a soft revenue environment, due primarily to cost-cutting measures.
The company also reiterated its full-year guidance, saying it remains comfortable with analyst estimates of $1.02 a share, assuming it sees "gradual economic improvement in the back half of the year, and some upturn in small and medium business technology spending."
For the second quarter, Office Depot earned $92.7 million on an operating basis, or 18 cents a share, up from $80.5 million, or 14 cents a share, in the year-ago quarter. The results include a charge of 2 cents a share related to litigation expenses to resolve a California wage lawsuit related to overtime pay for store managers.
Excluding the litigation charges, the company's results were in line with Wall Street's estimates of 20 cents a share, according to Thomson Financial/First Call.
Revenue for the quarter increased 4% to $2.64 billion from $2.55 billion last year.
In a press release, Office Depot said, "Overall, our second quarter results were in line with the increased guidance we provided earlier this year," adding that comparable-store sales increased but were slightly negative due to decreasing purchases of big-ticket items.
Technology sales fell 12% in the quarter, while core office supplies, paper and filing, and copy center and machine sales all saw positive comparable growth in the quarter.
Shares of Office Depot closed at $12.70 Tuesday before the release.