Office Depot Forecasts Rough Ride Ahead

Office Depot described Black Friday's sales as "okay," and said an earnings decline is likely in the current quarter in an SEC filing Monday. The company said to date, fourth quarter sales have been softer than the previous quarter, and referred to the holiday retail outlook as "uncertain." Office Depot went on to say it expects the first quarter of 2008 to remain challenging. In its international unit, the office supplier also sees sales growing at a slower rate, while operating margins are expected to decline year-over-year. The company plans on reducing spending and controlling costs to help improve international margins. Office Depot released the outlook as part of an investor relations presentation it will present to shareholders later in the quarter. Shares of Office Depot finished down 5.5% to $16.54 Monday.

Sources: Associated Press
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Earnings call transcript: Office Depot, Inc. Q3 2007

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