Office Depot's Q3 sales decline, profit increases

Share this article:

Office Depot's sales for the third quarter of 2011 decreased 2% to $2.8 billion compared with the third quarter of 2010, the company reported on Oct. 25.

Despite the poor sales figures, the office supplies retailer reported a net earnings increase of 187.5% to $92 million compared with Q3 2010. Operating expenses increased 1.8% to $835.9 million in the third quarter of 2011.

Office Depot's North American Retail Division's Q3 2011 sales decreased 4% to $1.2 billion compared with 2010. Comparable store sales decreased 2% during the quarter. The division reported an operating profit increase of 2% to $42 million in the third quarter of 2011, compared with the same period in 2010.

The North American Business Solutions Division's Q3 sales decreased 2% to $821 million compared with the third quarter of 2010. Operating profit for the division increased 56% to $39 million compared with the same period in the prior year.

Third quarter 2011 sales for the International Division, however, increased by 1% to $783 million compared with the third quarter of 2010. Third quarter 2011 operating profit decreased 36.6% to $19 million.

“I'm pleased with the traction we're getting in our North American businesses despite a lackluster U.S. economy,” Neil Austrian, Office Depot's chairman and CEO, said in a statement.

In a major restructuring that occurred in July, Office Depot named Bob Moore its EVP and CMO and appointed Kevin Peters president of North America, a new position. The retailer also combined its North American retail and business solutions divisions and split the role of EVP of e-commerce and direct marketing into two roles.

The retailer terminated Charles Brown, president of the company's international division, for having an "improper relationship" with an associate in September.

This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization. Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions