Europe a drain on Office Depot
International sales drag down performance
The tough European retail market is proving a drag on Office Depot, which has reported a profits fall in the first quarter.
Office Depot, which own the Viking Direct delivery business in the UK, as well as 77 stores outside the US in countries including France, has reported total sales of $3.7bn for the three months to March 26, up by 3 per cent. However, first quarter operating profit fell 5 per cent to $165m.
While the North American retail division saw comparable sales up by 1 per cent across the quarter, international sales fell by 2 per cent in US dollars, and by 6 per cent in local currencies.
Steve Odland, who took over as chairman and CEO of Office Depot last month, said: “International’s results fell short of our expectations. Despite very difficult business conditions in Europe, we clearly have an opportunity to improve International’s performance.”
