Office Depot has reported that quarterly profit plunged 55% to $68.8 million stating that the housing meltdown brought deep declines for the company's sales in Florida and California. 

Looking at revenue, Office Depot saw a drop of 3.2% to $3.96 billion, as the retailer faced North American sales declines. Analysts predicted a higher revenue of $4.07 billion for the quarter, according to Thomson Reuters.

Continued consumer fears over the weak housing market and credit crisis put a curb on their spending due to declining home values. Sales at its North American division fell 7.3%, while international sales rose 5.7%, the company stated. Increased competition also had an impact on its quarterly results.