Office Depot sweeps up US$116 million dollars in net income, an increase of 250% from the same period last year. The huge profit margins in operations is allegedly a result of its recent closures of businesses outside North America.
According to Office Depot, the company’s operating income and net income in Q1 2017 were US$127 million and US$116 million, witnessing increases of US$42 million and US$70 million respectively in comparison with the same period of 2016.
The huge increase in profits is to do with the store closings outside North America. RT Media has reported on closures of its stores in South Korea, New Zealand, and Australia a few weeks ago.
OFFICE DEPOT EXITS SOUTH KOREA
However, despite the huge gain in operational incomes, the company’s total sales volume in the first quarter has dropped to US$2.7 billion, with a year-over-year(YOY) decrease of 7%.
Regionally, the company did not receive the expected growths in its North American market. The overall sales of retail division and business solutions division in North America in Q1 2017 was US$1.4 billion and US$1.3 billion respectively, decreasing 5% and 4% in sales from the prior year.
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