Office Depot swings to loss in Q3, but results beat Street
Boca Raton, Fla. — Office Depot Inc. reported Tuesday a loss of $61.9 million for the third quarter, compared with net income of $100.9 million in the same period last year. Results still edged analysts’ expectations.
Revenue dropped 5.1% to $2.69 billion, missing Wall Street’s expected $2.89 billion revenue mark.
Revenue for the office supply chain has fallen for the past three quarters.
OfficeMax Q3 profit leaps on extinguished Lehman liability
Naperville, Ill. — OfficeMax Inc. reported Tuesday that net income for the third quarter jumped to $433.5 million from $22 million in the same period last year, as the office supply retailer eliminated non-recourse debt guaranteed by Lehman Bros. Holdings from its books.
Revenue dipped 1.7% to $1.74 billion, missing Wall Street’s expected $1.87 billion. Same-store sales fell 2.1%.
“Retail sales were challenged by weaker demand for technology products, especially personal computers,” said Ravi Saligram, president and CEO of OfficeMax. “We are also pleased to have extinguished the Lehman non-recourse liability from our balance sheet.”
The company said it plans a net reduction in store counts for 2012, with up to 45 store closures and one opening in the U.S., as well as eight-to-10 store openings and one-to-two store closures in Mexico.
Orvis selects MID Retail for merchandise allocation
Indianapolis — MID Retail Inc. said Tuesday that Orvis Co. has selected its Advanced Allocation software to manage the flow of merchandise to Orvis retail stores.
“MID Retail’s Advanced Allocation software will help keep us ‘in-stock’ on the items our customers want,” said Julie Cheney, director of planning and allocation for Orvis. “The MID solution enables us to accurately control our inventory position while improving customer satisfaction.”
The solution will facilitate a reduction in excess merchandise stocked at stores, resulting in fewer markdowns, reduced inventory carrying costs and improved profitability. Fully automated workflows enable retailers to maintain ideal store inventory levels with minimal manual intervention from their planning and allocation teams.