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The
company's net income rose to $116 million, or 22 cents per
share, in the quarter ended April 1, from $46 million, or 8
cents per share, a year earlier.
Excluding items, Office Depot earned 16 cents per share, beating
analysts average estimate of 12 cents, according to Thomson
Reuters I/B/E/S.
The company, which is focused on divestitures overseas to
sharpen its focus on North America, said overall net sales fell
to $2.68 billion from $2.88 billion.
Sales in the company's North America retail business fell nearly
10 percent to $1.36 billion, mainly due to lower customer
visits. The business accounted for half of total sales.
Comparable sales at the business, which houses 1,439 retail
stores, dropped 5 percent. That was much steeper than the 2.80
percent decline estimated by analysts polled by research firm
Consensus Metrix.
The company also said it expects sales in 2017 to be lower than
2016 due to the impact of store closures and challenging market
conditions.
Following Office Depot's failed merger with Staples Inc <SPLS.O>,
the company has been trying to streamline its business, by
shutting underperforming stores and cutting procurement and
general and administrative costs.
But, like other retailers, Office Depot continues to be hit by
slowing foot traffic as consumers shift to online shopping at
e-commerce giants such as Amazon.com Inc <AMZN.O>.
The company has set in motion plans to save $250 million
annually by 2018 by closing about 300 more stores in the next
three years.
(Reporting by Karina Dsouza in Bengaluru; Editing by Savio
D'Souza)
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