Office Depot sees quarterly sales decline; shares sag

ATLANTA (Reuters) - Office supplies retailer Office Depot Inc said on Tuesday its North American same-store sales fell nearly 10 percent in the second quarter and warned operating margins would fall more than expected, sending its shares down more than 30 percent to a new low. In a preliminary forecast, the retailer also said total company sales declined in the quarter and it was "disappointed" with the results. The office supply sector has been hit hard by the weakening U.S. economy as consumers and businesses have cut back on spending in the face of falling home values and the credit crunch. Rivals Staples Inc and OfficeMax Inc have also posted weaker same-store sales for North America. "There's no question about the fact that consumers had a little boost with the rebate checks that they got, but overall they are very... [read full story]