Office Depot announced results for the first quarter ended March 28, 2015. Total reported sales were $3.9 billion compared to $4.4 billion in Q1 2014, a decrease of 11%.
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In the first quarter of 2015, Office Depot reported operating income of $88 million and net income attributable to Office Depot, Inc. of $45 million, or $0.08 earnings per share. In the first quarter of 2014, the reported operating loss was $79 million and the net loss attributable to Office Depot, Inc. was $109 million, or $0.21 loss per share.
Total adjusted sales in the first quarter of 2015 declined 4% compared to the prior year period, excluding the impact of foreign currency translation, U.S. retail store closures, and first quarter 2014 sales from the company’s interest in the Grupo OfficeMax joint venture which was sold in August 2014.
Adjusted operating income for the first quarter of 2015 was $135 million compared to $68 million in the first quarter of 2014. Adjusted net income attributable to Office Depot, Inc. for the first quarter of 2015 was $71 million, or $0.13 earnings per share, compared to $37 million, or $0.07 earnings per share, in the first quarter of 2014.
Retail Division sales were $1.7 billion in the first quarter of 2015, a decline of 9% compared to the prior year period, primarily due to planned store closures in the fiscal twelve months through March 28, 2015. Same-store sales declined 2%, primarily due to lower average order value.
Business Solutions Division sales were $1.5 billion in the first quarter of 2015, a decline of 4% compared to the prior year period. Sales declined 3% in constant currency. The sales decline was mostly attributable to the scheduled transition out of certain large customers that purchased under a legacy OfficeMax Tier 1 buying arrangement and lower sales in Canada.
International Division sales were $0.8 billion in the first quarter of 2015, a decline of 20% compared to the prior year period, primarily due to the negative impact of foreign currency translation. International sales declined 7% in constant currency. ■