While its total second-quarter sales fell 2% year over year, partly because of a drop in ecommerce sales, Office Depot Inc. is banking on its strength in online subscriptions to business services and long-term growth in sales through its ecommerce platform, executives said today.

“We remain confident in our strategy of transforming Office Depot into a leading B2B integrated distribution platform, despite the challenges we faced during the quarter,” CEO Gerry Smith said on a Q2 earnings conference call with investment analysts, according to a transcript from Seeking Alpha.

Office Depot didn’t break out ecommerce sales, but it noted that its online channel reported “less sales” in the second quarter than in prior quarters as a result of the company’s efforts to protect profit margins. It also said, however, that online subscription sales to its products and services in the second quarter increased year over year by 16% in its Business Solutions Division, which sells to business customers through multiple ecommerce sites as well as through catalogs, a customer contact center and sales reps.

Online subscriptions spark sales

“On a year-over-year percentage basis, product subscriptions generated through our ecommerce channel were the largest driver of the increase in BSD service revenues; a true testament to the investments we have made in our ecommerce platform,” Smith said.

Q1 sales in the Business Solutions Division increased 2% year over year to $1.33 billion, as operating income increased 28% to $86 million.

While its total second-quarter sales fell 2% year over year, partly because of a drop in ecommerce sales, Office Depot Inc. is banking on its strength in online subscriptions to business services and long-term growth in sales through its ecommerce platform, executives said today.

“We remain confident in our strategy of transforming Office Depot into a leading B2B integrated distribution platform, despite the challenges we faced during the quarter,” CEO Gerry Smith said on a Q2 earnings conference call with investment analysts, according to a transcript from Seeking Alpha.

Office Depot didn’t break out ecommerce sales, but it noted that its online channel reported “less sales” in the second quarter than in prior quarters as a result of the company’s efforts to protect profit margins. It also said, however, that online subscription sales to its products and services in the second quarter increased year over year by 16% in its Business Solutions Division, which sells to business customers through multiple ecommerce sites as well as through catalogs, a customer contact center and sales reps.

Online subscriptions spark sales

“On a year-over-year percentage basis, product subscriptions generated through our ecommerce channel were the largest driver of the increase in BSD service revenues; a true testament to the investments we have made in our ecommerce platform,” Smith said.

Q1 sales in the Business Solutions Division increased 2% year over year to $1.33 billion, as operating income increased 28% to $86 million.