Thursday, February 27, 2025
Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services. It offers merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture through its chain of office supply stores under the Office Depot, Foray, Ativa, Break Escapes, Worklife, and Christopher Lowell brand names. The company also provides graphic design, printing, reproduction, mailing, shipping, and other services through design, print, and ship centers. It has operations throughout North America, Europe, Asia, and Central America. The company also sells its products and services through direct mail catalogs, contract sales force, Internet sites, and retail stores, through a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 31, 2008, Office Depot operated 1,267 North American retail division office supply stores and 162 international division retail stores, as well as participated under licensing and merchandise arrangements in 98 stores. The company was founded in 1986 and is based in Boca Raton, Florida.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Challenging Conditions. Continuing challenging macroeconomic and business conditions impacted ODP in Q4. ODP Business Solutions faced economic factors that caused enterprise spending constraints in the quarter, while Office Depot had more cautious consumer spending (along with 47 fewer stores). However, fiscal year figures were in-line with management guidance, and management is executing on initiatives to improve traction on both fronts.
4Q Results. Sales for the fourth quarter were $1.62 billion compared to $1.80 billion last year but were above our expectations at $1.55 billion and consensus at $1.61 billion. Net loss totaled $3 million, or $0.10/sh, compared to a loss of $37 million, or $0.96/sh, in the prior year. Adjusted EPS was $0.66 versus $1.13 last year. We were at $0.40 and $0.68, respectively. Adjusted EBITDA totaled $58 million, down from $83 million last year, and we were at $49 million.
Get the Full Report
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
