After a failed merger with rival Staples, Office Depot managed to see a second quarter profit from the sizable payout. However, the company still couldn’t meet most expectations with revenue falling 6 percent to $3.22 billion.
The company earned $210 million, or 38 cents per share, compared with a loss of $58 million, or 11 cents per share, a year prior. This was half what was expected on Wall Street, according to a survey of industry analysts by Zacks Investment Research.
Earnings, adjusted for non-recurring gains such as $187 million from the Staples payment, came to 3 cents per share.
The office supply store announced on Wednesday that it would close hundreds of additional stores and expects sales to continue falling as it closes stores.
The plan is to close an additional 300 stores over the next three years while 400 stores have already been closed.
Office Depot is the No. 2. office supply store after Staples.
Disclaimer: We have no position in Office Depot Inc. (NASDAQ: ODP) and have not been compensated for this article.