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Office Depot affirms 3Q
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August 23, 2001: 10:25 a.m. ET
No. 1 office supply retailer comfortable with 3Q, second-half forecasts
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NEW YORK (CNNfn) - Office Depot said Thursday it remains comfortable with Wall Street's third-quarter expectations, and the nation's No. 1 office supply retailer said the economic slowdown is continuing to pinch its business customers.
CEO Bruce Nelson told investors in a pre-recorded announcement Thursday that he sees no reason to change fourth-quarter and full-year guidance at this time because the slowing economy has prompted its contract business customers to cut back on spending.
Analysts polled by earnings tracker First Call expect Office Depot (ODP: up $0.33 to $13.23, Research, Estimates) to earn 20 cents a share for its third quarter, ending Sept. 29, up from 14 cents a share a year earlier. Fourth-quarter forecasts call for earnings of 20 cents a share compared with 6 cents, and full-year earnings are estimated at 73 cents a share versus 70 cents.
"The overall economy does not seem to be improving for business customers of any size. As a result, we expect sales in that division at lower end of the low to mid single-digit range for the third quarter," Nelson said.
Overall third-quarter sales will come in at the low single-digit range, Nelson said, adding that North American sales at stores open at least a year, a figure known as comparable-store sales, showed slight improvement. 
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