Jul. 28--DELRAY-BASED OFFICE DEPOT STRUGGLES: Hold on to your paper clips.

Office Depot Inc. is slated to release its second-quarter results Wednesday, and if the retailer's warning of worse-than-expected performance is any indication, its stock may be in for a bumpy ride.

Shares sank 32 percent to $7.12 three weeks ago when the Delray Beach retailer gave Wall Street a heads-up that things didn't look good. Office Depot said its sales at North American stores open for at least a year fell 10 percent last quarter, and operating margins may drop more than forecast.

The stock price (NYSE: ODP) continued to trickle down the following week, closing July 15 at $5.75 -- its lowest level in 17 years. Office Depot shares had not dipped below $6 since November 1991.

Prices rebounded a bit last week to about $7. Earnings have taken a nose dive in the past two quarters, dropping 55 percent in first quarter 2008 and 85 percent in fourth quarter 2007.

Analysts had estimated earnings of 21 cents a share for the second quarter. Given the company's stormy outlook, they're now guessing 4 cents per share.

LOCAL SUPPLIER: The next time you bite into one of those enormous burritos from Chipotle Mexican Grill Inc., you might get a taste of Norman Thomas' green bell peppers.

The Palm Beach County farmer has been tapped as a supplier for Chipotle's 17 Florida restaurants. It's part of the chain's effort to buy local.

Denver-based Chipotle (NYSE: CMG) announced the program this summer, committing to buying 25 percent of some of its produce items, such as romaine lettuce, jalapeno peppers and red onions, from small and midsize farms. The chain has more than 730 restaurants across the country, including four in the county.

"The average produce in this country is shipped 1,500 miles from where it's grown to where it's eaten. Under this local program, we're going to get as much as we can from sources within about 200 miles of our restaurants," said Chipotle spokesman Chris Arnold.

Boca Raton-based Thomas Produce Co. is the first Florida grower to participate.

Despite a rocky restaurant scene these days, Chipotle announced Wednesday that its quarterly earnings were up 22.5 percent. Sales at restaurants open for at least a year increased 7.1 percent.

Still, the restaurant chain fell just short of analysts' expectations. So shares tumbled nearly 20 percent the next day as analysts said they thought the eatery was losing momentum to soaring food costs -- just the latest restaurant stock to take a beating on Wall Street.

DENIM INVASION: It's the denim invasion. Two high-end jeans boutiques are opening in downtown West Palm Beach's Clematis Street district.

New York City transplant Kenia Brown opened Denim and Styles LLC in the spring on Olive Avenue. The retailer's selection of premium jeans starts at $89.

Meanwhile, Jeanz and Teaz LLC, showcasing another array of designer denim labels and euro-style jeans, is coming in September just a few blocks down on Olive in One City Plaza. It's the first clothing store for West Palm Beacher Sharon Jones, a Washington native.

Also new to the district is Urban Dog Sitters LLC, a day-care center for pampered pooches with neurotic owners, says owner Diane Seltzer.

And Sanctuary Barber Spa is no longer just a men's hideaway. The six-year-old spa for men at Dixie Highway and Clematis is adding 1,600 square feet to expand its services to the fairer sex.

Lori Becker writes about retail and small business. Contact her at The Palm Beach Post, 2751 S. Dixie Highway, West Palm Beach, Fla. 33405; call 561-820-4410; or e-mail lori_becker@pbpost.com.

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Story Source: The Palm Beach Post