Goldman Sachs Comments on Office Depot As Gross Margin Shifts

Goldman Sachs has published a research report on Office Depot ODP. In the report, Goldman Sachs wrote, "ODP delivered better-than-expected profitability, driven by better-thanexpected gross margin and solid expense control, despite sluggish sales. Roughly one-third of the beat was driven by non-recurring items, related to a change to a credit card agreement, but the underlying performance was still better, suggesting that efforts to improve profitability through better analytics and an ongoing cost-cutting effort are gaining traction." Goldman Sachs rated Office Depot a Neutral with a price target of $4.00. Office Depot closed Tuesday at $3.99.