Office Depot (ODP) Shares Get Shredded After Q2 Warning

July 8, 2008 12:01 PM EDT

Shares of Office Depot, Inc. (NYSE: ODP) are down $3.41 (-32.76%) after the company said it would be negatively impacted in Q2 due to a continued challenging economic environment.

North American Retail same store sales decreased nearly 10% versus the prior year and total Company sales were down slightly.

The Company anticipates its EBIT margin to have declined for the second quarter by 200 basis points more than the 200 to 250 basis point decline previously indicated on a year-over-year basis as sales trends worsened late in the quarter.

While the Company anticipates the economic environment to be difficult over the balance of the year, it expects its profit margins to improve sequentially in the third and fourth quarters.

(NOTE - International business looks stronger because N. American sales fell almost 10%, but overall company sales were only down slightly)

Office Depot, Inc. is a global supplier of office products and services. The Company is organized into three business segments: North American Retail division, North American Business Solutions division and International division. [SM]

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