• July 9, 2008

Office Depot says that the tough economic conditions during the second quarter had a bigger financial impact than it initially projected, and that same-store sales in North America have fallen nearly 10% versus the prior year.

The company, which is due to report its quarterly results later this month, says that while it is "disappointed with these preliminary results," it will continue "to press ahead with the implementation of its strategic plans and margin expansion initiatives."

Although it expects the economic softness to last through the year, it expects profit margins to improve in the third and fourth quarters.--Sarah Mahoney