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BOCA RATON, Fla. - ODP Business Solutions, a division of The ODP Corporation (NASDAQ: ODP), trading at $17.81 with a market capitalization of $531 million, has announced a distribution partnership with luxury linens brand Sobel Westex. The collaboration aims to enhance the guest experience in the hospitality sector by supplying premium terry cloth towels and bedding. According to InvestingPro data, ODP’s stock has shown strong momentum with a nearly 20% gain in the past week.
David Centrella, executive vice president of The ODP Corporation and president of ODP Business Solutions, stated that this partnership demonstrates the company’s commitment to growth in the hospitality industry and its ability to deliver trusted brands across various sectors.
Sobel Westex, recognized for its high-quality hospitality and retail textiles, will benefit from ODP Business Solutions’ extensive customer base and logistics network. The company’s product range includes premium pillows, plush towels, high-quality linens, blankets, pool towels, and spa-like robes designed to offer luxury and comfort.
Walter Pelaez, CEO of Sobel Westex, expressed confidence that the partnership would be transformative for both companies and could significantly impact the hospitality industry.
Nisha Brown, vice president of marketing & product management at ODP Business Solutions, emphasized the opportunity to provide customers with the means to create memorable guest experiences through Sobel Westex’s luxury products.
Following a recent milestone agreement with a leading hospitality management company, ODP Business Solutions will continue to supply high-quality solutions in traditional product categories while expanding into new ones to meet the needs of its hospitality clients and other industries. With annual revenue of $6.99 billion and trading at just 0.66 times book value, InvestingPro analysis suggests the stock may be undervalued, with analyst price targets ranging from $17 to $36.
This partnership marks a strategic move for ODP Business Solutions as it diversifies its offerings beyond office supplies, leveraging its distribution capabilities to cater to the evolving demands of the hospitality sector.
The information in this article is based on a press release statement.
In other recent news, ODP Corporation reported a notable miss on its fourth-quarter 2024 earnings, with earnings per share (EPS) at $0.66, which fell short of the anticipated $1.07. Revenue was reported at $1.62 billion, below the expected $1.69 billion, marking a 10% year-over-year decline. The company is navigating macroeconomic challenges, including inflation and a declining B2B office supplies market. Despite these setbacks, ODP is focusing on restructuring and entering new markets, such as the growing hospitality supply segment. The company has secured a landmark agreement with a leading hospitality management company, marking its entry into the $16 billion hospitality supply industry. Analysts have noted ODP’s strategic pivot towards B2B solutions, with plans to expand into healthcare and cruise lines. The company’s restructuring plan, Optimize for Growth, aims to accelerate revenue growth in B2B while reducing reliance on retail operations. Co-CFO Adam Haggard mentioned that this plan is expected to generate significant value over its duration.
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