Office Max Inc.’s stock dropped 12 percent in morning trading following news that the company was expecting lower-than-forecast sales for the third quarter.
The company said this morning in reporting weaker than expected quarterly sales, the economy was recovering at a slower rate than expected and expects to face “headwinds” in the second half of the year due to continued high unemployment and other economic conditions.
The third-largest U.S. office supplies seller said its second-quarter net income was $11.8 million, or 14 cents a share, compared with a net loss of $17.7 million, or 23 cents a share, a year earlier.
Excluding items, it earned 12 cents a share. Analysts on average were expecting the company to break even, according to Thomson Reuters I/B/E/S.
Sales slid 0.3 percent to $1.65 billion, while analysts on average expected $1.67 billion.
The news came a week after larger rival Office Depot missed quarterly sales estimates and forecast a flat operating profit in the current quarter as it spends more to win back-to-school shoppers.
The news came a week after larger rival Office Depot missed quarterly sales estimates and forecast a flat operating profit in the current quarter as it spends more to win back-to-school shoppers.
Julie Wernau contributed to this report.
