Paper costs affect Office Depot's Q1 performance
| 04 April, 2019
Office Depot has announced preliminary estimated results for the first quarter ended March 31, 2019. For the first quarter of 2019, the Company expects to report revenue of approximately $2.76 billion and adjusted operating income1 of approximately $65 million. The primary driver of the anticipated first quarter 2019 results was lower than expected operating performance at the Company’s CompuCom division.
The Business Solutions Division is expecting to report operating income of approximately $46 million in the first quarter of 2019. This performance was impacted by paper and paper related costs increases that could not be completely passed through to customers due to the timing of contractual limitations. Paper costs have increased over 20% during the past 12 months and Office Depot said that it is pursuing several initiatives to mitigate the impact of such cost increases going forward/