Office Depot narrows 4th-quarter loss compared to year-earlier period hurt by writedowns

Office Depot narrows 4th-qtr loss, tops estimates

BOCA RATON, Fla. — Office Depot Inc. on Tuesday reported it narrowed its fourth-quarter loss compared with a year-earlier period hurt by writedowns and higher interest payments.

In the quarter ended Dec. 26, the office supplies retailer lost $76.7 million, or 28 cents per share, compared with a loss of $1.54 billion, or $5.64 per share, in the same period a year earlier.

The latest quarter’s results included $58 million in restructuring charges for severance and other costs. Without those costs, Office Depot posted an adjusted loss of 6 cents per share. In the same period a year ago, Office Depot’s adjusted loss was 73 cents per share.

Results in the latest quarter beat the Wall Street consensus estimate of 22 cents per share, according to an analyst poll by Thomson Reuters.

Quarterly revenue fell 6 percent to $3.07 billion from $3.27 billion. Analysts had expected $3 billion in revenue.

In a statement, Chief Financial Officer Mike Newman said sales were better than expected in Office Depot’s North American retail stores, which recorded a 9 percent drop in sales. Newman also said the retailer’s international business exceeded the company’s expectations.

For all of 2009, the company posted a net loss of $627 million, or $2.30 per share, compared with a loss of $1.48 billion, or $5.42 per share, in 2008. The company reported an adjusted loss of 26 cents per share for 2009.

Revenue fell 16 percent to $12.14 billion from $14.5 billion.

Analysts predicted a loss of 42 cents per share on revenue of $12.03 billion.

Shares of Office Depot added 18 cents, or 2.7 percent, to $6.83 in afternoon trading.