Office Depot Inc. (NASDAQ: ODP) reported its second-quarter financial results before the markets opened on Wednesday. The office supplies store posted $0.06 in earnings per share (EPS) and $2.36 billion in revenue billion. The consensus estimates from Thomson Reuters had called for $0.08 in EPS and revenue of $2.44 billion. And in the same period of last year, the retailer said it had EPS of $0.03 and $3.22 billion in revenue.

During the quarter, Retail Division sales were $1.1 billion, compared to $1.2 billion last year. The decline was due to the impact of planned store closures over the past 12 months and a 6% decline in comparable store sales, due primarily to lower store traffic and average order value of purchases. Also the company closed 31 stores and ended the quarter with a total of 1,408 retail stores in the Retail Division.

Business Solutions Division sales were $1.2 billion, a decline of 6% in constant currency compared to the second quarter of 2016. The sales decline was primarily driven by continued competitive pressures, prior period customer losses in the contract channel, the ongoing reduction in catalog sales through call centers and the impact of sales from omnichannel programs that are recorded in the Retail Division.

In terms of the outlook, Office Depot expects total company sales in 2017 to be lower than 2016, primarily due to the impact of planned store closures, prior year contract customer losses and continued challenging market conditions. At the same time, the firm is predicting adjusted operating income of roughly $500 million for the 2017 fiscal year, while last year the company had $531 million in operating income.

The consensus estimates are $0.53 in EPS and $10.29 billion in revenue for the full year.

Gerry Smith, CEO of Office Depot, commented:

We continue to build our capabilities across the organization as we focus on driving the omnichannel growth opportunities we have identified in the North American market. I’m pleased that we have delivered year to date adjusted operating income that is ahead of the prior year and we remain on track to achieve our full year target. Longer term, we are maintaining our focus on executing initiatives to strengthen our existing business, expanding our last-mile advantage, while evaluating opportunities to transform the company for future growth.

Shares of Office Depot tumbled nearly 21% early Wednesday to $4.83. The consensus analyst price target is $5.33, and a 52-week trading range is $3.01 to $6.26.

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