US stock futures flounder amid tech weakness, Fed caution
BOCA RATON, Fla. -On Wednesday, The ODP Corporation (NASDAQ:ODP) reported fourth quarter earnings that fell short of analyst expectations, as sales declined amid a challenging macroeconomic environment.
ODP’s stock was unchanged in early trading following the earnings release.
The office supplies retailer posted adjusted earnings per share of $0.66, missing the analyst consensus of $1.07. Revenue dropped 10% YoY to $1.62 billion, below estimates of $1.69 billion.
ODP attributed the revenue decline primarily to lower sales in its Office Depot retail division, which saw an 13% decrease due to 47 fewer stores in operation and reduced retail and online traffic. The ODP Business Solutions division also experienced a 9% sales drop, driven by macroeconomic factors causing reduced business customer spending.
"While we achieved our revised guidance for the year, our performance in 2024 was impacted by weak macroeconomic trends, subdued business and consumer activity, and effects from severe weather in the second half of the year," said CEO Gerry Smith.
For the full year 2024, ODP reported adjusted EPS of $3.30 on revenue of $7.0 billion, down from $6.61 and $7.8 billion respectively in 2023.
The company announced a new "Optimize for Growth" plan aimed at accelerating B2B revenue growth while reducing retail exposure. This includes realigning the organization, refining product assortments, and reallocating capital to prioritize B2B opportunities.
The company ended the quarter with $644 million in total available liquidity, including $166 million in cash.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.