300 More Office Depot Inc Stores Closing, ODP Stock Soars

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Office Depot Inc (NASDAQ:ODP) has announced plans to close 300 more stores in the United States.

ODP Stock, Office Depot, Office Depot Stores ClosingThe office supply retailer said that it will be closing 300 stores in the U.S. over the next three years. These store are being closed as part of its U.S. Retail Store Optimization plan. It recently completed its plan to close 400 stores that started in 2014, which resulted in $100 million in ongoing benefits.

Office Depot’s plans will have it opening smaller stores that are about 15,000 sq. ft. It already started a pilot program for stores with this new format. Current plans have it expanding this format to include 24 stores by the end of 2016 and 100 stores by the end of next year.

The news of additional Office Depot stores closing was announced during the company’s earnings report for the second quarter of 2016. This also included earnings per share of 3 cents for the quarter. This is down from the 6 cents reported a year ago, which is also what analysts were looking for in the second quarter of 2016.

ODP stock was aided with revenue for the second quarter of 2016 coming in at $3.2 billion. This is a 6% decrease from the $3.4 billion that the company reported in the second quarter of 2015. However, it was able to match Wall Street’s expectations for the quarter.

Office Depot said that it expects revenue for 2016 to be lower than 2015 revenue due to its store closings. 2015 revenue was $14.48 billion. Analysts are looking for the company to report revenue of $13.66 billion for the current year.

ODP stock was up 6% as of Wednesday afternoon.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/odp-stock-office-depot-stores-closing/.

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