Office Depot Announces Second Quarter 2018 Results

Q2 2018 Reported Sales Increase of 11% to $2.6 Billion
Sales Increase of 4% in Business Solutions Division (BSD)
Improving Trends in Retail Division with Q2 2018 Comparable Sales Down 2%
Services Revenue Increases to 16% of Total Sales
Q2 2018 Operating Income of $48 Million versus $41 Million in Prior Year
Re-Initiated Share Repurchase Program
BOCA RATON, Fla.–(BUSINESS WIRE)–Aug. 7, 2018– Office Depot, Inc. (“Office Depot,” or the “Company”) (NASDAQ: ODP), a leading omni-channel provider of business services and supplies, products and technology solutions, today announced results for the second quarter ended June 30, 2018.

Total reported sales for the second quarter of 2018 were $2.6 billion compared to $2.4 billion in the second quarter of 2017, an increase of 11%. Product sales in the second quarter were up 1%, while service revenues grew 120%, driven primarily by the revenues contributed by the CompuCom acquisition. On a consolidated basis, services represent approximately 16% of total Company sales. Service revenue excluding CompuCom grew 8% in the second quarter, due to the Company’s strategic efforts to grow overall business services revenue.

In the second quarter of 2018, Office Depot reported operating income of $48 million and net income from continuing operations was $19 million, or $0.03 per share, compared to operating income of $41 million, net income from continuing operations of $21 million and $0.04 per share in the second quarter of 2017.

For the first half of 2018, Office Depot reported operating income of $125 million compared to an operating income of $165 million in the first half of 2017. Net income from continuing operations for the first half of 2018 was $52 million, or $0.09 per share, compared to net income from continuing operations of $95 million, or $0.18 per share, in the first half of 2017. The year-over-year decrease was due to lower gross margins from store and supply chain cost deleverage, as well as higher selling, general and administrative expenses experienced primarily in the first quarter of 2018.
more detail at: http://investor.officedepot.com/phoenix.zhtml?c=94746&p=irol-newsArticle&ID=2362398

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