Office Depot, Inc. (NYSE: ODP) is scheduled to release its fourth-quarter earnings before the opening bell on Tuesday, February 22, 2011. Analysts, on average, expect the company to report a loss of 3 cents a share on revenue of $2.97 billion. In the year ago period, the company reported a loss of 6 cents per share on revenue of $3.07 billion.
Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services. Office Depot provides products and services to its customers through 1,600 worldwide retail stores, a dedicated sales force, top-rated catalogs and a $4.1 billion e-commerce operation. Office Depot has annual sales of approximately $12.1 billion, and employs about 41,000 associates around the world.
In the preceding third quarter, the Boca Raton, Florida based company's net income was $54.29 million or $0.18 per share, compared to a loss of $412.97 million or $1.51 per share last year. Revenue declined 4% to $2.9 billion from $3.03 billion in the same period last year.
A soft economy, including high unemployment among office workers, has taken its toll on Office Depot. Meanwhile, narrowing margins seem to be a problem for the industry as a whole. Rising costs coupled with increased promotional campaigns are weighing heavily on the bottom line of several office supply retailers.
The company is containing costs, closing underperforming stores, reducing exposure to higher dollar-value inventory items, shuttering non-critical distribution facilities and focusing on providing innovative products and services. Office Depot is reviewing capital-efficient opportunities to expand its reach in Eastern Europe and South America. The company believes that India and China will provide significant growth opportunities going forward.
In December, the company announced that it has entered into an agreement to sell its Office Depot Japan business to Kakuyasu. The transaction also includes an agreement for Kakuyasu to license Office Depot's trade names, obtain sourcing services and continue to support Office Depot's global customers in Japan. In November, Office Depot struck a deal to sell its Israeli unit to Israeli retailer Hamashibr Lazarchan.
Full Disclosure: None.
Full Disclosure: None.
