The ODP Corp., parent of Office Depot, beat a Wall Street earnings estimate, although second-quarter revenue didn’t meet expectations.
Net income from continuing operations was $34 million, or 87 cents per diluted share, versus $20 million, or 39 cents per diluted share, in the year-before quarter. Adjusted for one-time events, net income from continuing operations was $39 million, or 99 cents per diluted share, versus $39 million, or 79 cents per diluted share, in the year-previous period the company reported.
ODP Corp. beat a Yahoo Finance-published analyst consensus estimate for 77 cents per adjusted diluted share, but it came up short of a $1.98 billion sales estimate.
Total reported sales of $1.91 billion, were down 6% versus the prior-year quarter. The decrease was primarily due to lower sales in the Office Depot consumer division and that was largely driven by 68 fewer retail locations in operation compared to the prior year, as well as lower retail and online consumer traffic and transactions, according to ODP Corp. Operating income was $46 million versus $28 million in the year-earlier period, the company stated, and adjusted operating income was $53 million versus $54 million in the year-prior period.
Office Depot division comparable sales slipped 8% for the year-past period. Division overall sales were $900 million in the quarter, down 13% year over year. Operating income was $35 million versus $49 million in the 2022 period.
“Our continued focus on operational excellence and disciplined capital allocation drove solid operating results and a strong increase in earnings per share,” said Gerry Smith, ODP Corp. CEO. “While the weaker macroeconomic environment and somewhat sluggish consumer activity created top-line headwinds in our consumer business during the quarter, Office Depot continued to provide a superior customer experience, and we are encouraged by our expanded assortment, which positions us well for the upcoming back-to-school selling season.”
