Shares of the company, which bought rival OfficeMax for $976 million in a deal that closed last November, rose 14 percent to 5.77 in premarket trading on Tuesday. Office Depot said it now expects the cost benefits of the OfficeMax acquisition to more than offset weak sales trends for the rest of the year and a year-over-year increase in incentive compensation expense. The company and larger rival Staples Inc (SPLS.O) are reeling under one-two punch of fierce competition from retailers such as Amazon.com (AMZN.O) and the shift in consumer spending to smartphones, tablets and laptops from traditional office supplies. Office Depot said on Tuesday that it still expects 2014 sales to be lower than 2013, while Staples warned in August that third-quarter sales could fall as demand slowed in a saturated market.
via Business News http://ift.tt/1x3lGw1
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