Depot posts Q2 profit hike

 

21 July 2005 – Delray Beach (FL): Office Depot has posted a whopping 26 per cent rise in its Q2 income.

 

The power played registered net earnings of $100 million, with EPS up 24 per cent to $0.31. Sales lifted 6 per cent to $3.4 billion, while North American retail comp sales rose 3 per cent.

 

It was not all good news for Depot, however, with a decline in gross margin at its international operation. Division operating profit, as a percentage of sales, fell from 12.9 per cent to 10 per cent.

 

Depot’s chairman and CEO Steve Odland said: "We are pleased with our overall performance this quarter." But he added: "Our international operating results, however, did not keep pace with those of our North American divisions. Over time, we need to grow this business at a more rapid rate and deliver improved profitability."