Office Depot, Inc. (NASDAQ:ODP) today announced results for the second quarter ended June 29, 2019.
The Boca Raton, Fla.-based office equipment giant reported Wednesday that total sales came in at of $2.6 Billion, down 2% from the prior-year period.
The sales decline in the second quarter was partially offset by stronger sales performance in the Business Solutions division. Product sales in the second quarter were down 1% relative to the prior year period.
ODP also suffered an operating loss of $15 Million and net loss from Continuing Operations of $24 Million, compared to operating income of $48 million in the prior year period.
The reduction of operating income was primarily driven by a $55 million increase in merger and restructuring costs primarily associated with BAP-related charges recognized in the quarter.
CEO Gerry Smith said "Our strong operating results were driven by growth in our BSD division and improving performance at our CompuCom division. Our strategic focus on our B2B businesses, which consists of our BSD and CompuCom divisions, generated over 60% of our revenue and over 90% of our division level operating income in the second quarter."
The retail division reported sales were $1.0 billion in the second quarter of 2019, down 5% versus the prior-year period. Planned closures of underperforming retail stores contributed to the reported decline with 54 fewer retail outlets at the end of the second quarter 2019 as compared to the prior year, partially offset by a 17% increase in buy online
Shares dropped two cents, or 1.1%, to $1.73
