Office supply slowdown
AP
Office Depot is slashing costs, but it hasn’t boosted profits.
The nation’s No. 2 seller of office supplies said its third quarter loss widened to $413 million, or $1.51 per share, even as it closed stores and eliminated jobs.
Credit Suisse analyst Gary Balter downgraded the stock to “underperform,” saying that the office products retailer likely won’t earn a profit in the next year. Competition remains high, he said, and the company is struggling with its international business. Adding to its woes is the fact that consumers and businesses are spending less on big-ticket items such as furniture and computers.
Last week, the company said its North America retail division sales fell 18 percent in the third quarter, partly because the company had 117 fewer stores open than a year ago.
Credit Suisse’s Balter said he prefers rival OfficeMax as an investment, saying that chain has better prospects for growth.
Associated Press
