Boca Raton-based Office Depot posted a larger-than-expected loss Tuesday of $64 million, or 23 cents a share, for its April-to-June quarter.
Analysts were expecting a loss of 9 cents per share. In the same period a year ago, Office Depot had a loss of $29 million, or 11 cents per share.
The second quarter, which is typically weak for the office supply retailer, also saw a 7 percent decrease in revenue: $2.5 billion compared to $2.7 million in the second quarter of 2011, the company said.
"We're not waiting for the economy to recover to drive results at Office Depot," Chief Executive Neil Austrian told analysts on a conference call Tuesday. He said Office Depot would step up its strategy for smaller-format, more profitable stores.
Office Depot, which employs 1,700 at its Boca Raton headquarters, said quarterly results included several charges and a tax benefit that affected the numbers. Charges included $24 million related to weaker operating performance than projected in 23 stores.
The retailer also closed six locations and reduced the square footage of three stores in the quarter.
Kevin Peters, who leads the retail division, said charges will increase as Office Depot acclerates its strategy. The retailer plans to reduce the size of 30 to 35 stores by year-end, and more than double that in 2013, executives said.
North American retail stores sales fell 8 percent to $994 million. The company said the decline reflects its closing of stores in Canada last year and additional store closures in the U.S.
Comparable store sales -- 1,094 stores that have been open for more than one year -- decreased 4 percent. That was improved from a decline of 4 percent a year earlier, Office Depot said.
This quarter's decline was due to computer sales and related products, as customers switched from buying laptops to tablets. Sales of copy and print services, and office furniture increased.
Office Depot's stock closed at $1.74, down 4 cents, on Monday. The stock fell six cents in early morning trading after the earnings announcement.
