Office Depot, OfficeMax drop after Staples misses expectations

Office Depot (ODP) and OfficeMax (OMX) are sinking after another business supplies retailer, Staples (SPLS), reported significantly weaker than expected second quarter results. Staples said that it saw weaker than expected sales trends in North America, as well as ongoing weakness in Europe and Australia. Sales of computers and core office supplies were anemic during the second quarter, the retailer added. Moreover, Staples said that it expects its overseas sales climate to be "extremely difficult." The company now expects its earnings per share to increase by a low single digit percentage for its fiscal 2012, down from its previous outlook for a high single digit percentage increase. On a positive note, Staples indicated that computer sales could rebound once Microsoft's new Windows 8 operating system. The company also left open the possibility that profits could be higher than expected for the remainder of the year. In mid-morning trading, OfficeMax slumped 29c, or 5.59%, to $4.89, while Office Depot slid 6c, or 3.81%, to $1.54. Staples, meanwhile, tumbled $1.90, or 14.08%, to $11.55.