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| Office Depot expects continued erosion of sales and earnings Office Depot, Inc., the second-largest U.S. office supplies chain, projects continued erosion of sales and earnings in the fourth quarter of 2007. The company's results for the third quarter of 2007 were negatively impacted by difficult housing-related economic conditions in certain of its key markets, particularly Florida and California, which accounted for 28 percent of North American sales in that period. This weakness appears to be spreading to other U.S. retail markets, creating additional pressure on sales and margins. Further, since inventory purchases are down due to lower sales and disciplined inventory management, fourth quarter vendor program support levels are currently expected to be about $70 million lower than last year. write your comments about the article :: © 2007 Construction News :: home page |