Office Supply Stock Losing Market Share
This week, there was a shortage of sales at one of the world\'s largest retailers of office products and furniture. . . Office Depot.
As the US market fell sharply last week to Friday\'s low, I saw a lot of weakness in the current market, which seems to have no incentive to move towards higher resistance.
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As investors keep an eye on the latest moves in the US stock and commodity markets, volatility in stocks and commodities will continue to be the subject of the coming week. S.
The economic report shows whether the economic recovery is moving forward.
The European debt crisis remains a major focus of the ECB heads of state meeting this week to discuss the debt problems of Greece, Portugal and Ireland.
European finance ministers met on Tuesday and the team of the International Monetary Fund and the European Central Bank spent a week in Athens.
Greece is expected to come up with a new fiscal strategy, including new austerity measures and privatization, with IMF staff likely to issue a statement this weekend.
According to Zacks Investment Research, Office Depot has been losing market share to industry giants. than-expected first-
2011 quarter results.
Poor performance can be traced back to the sales downturn in each business unit that suffered losses due to the reduction in customer transactions and the divestiture of Japanese and Israeli businesses.
The company reported that the balance sheet level of the office warehouse was 3.
Top down 2%-
Line and rest-even bottom-
Line, both are below the estimate of the Zacks Consensus.
Sales of the company\'s North American business solutions division contract Channel fell by 3% due to the failure to retain customers during the transfer to the new sourcing consortiumquarter event.
In addition, we are cautious about the macroeconomic environment and weak job markets, while small businesses and consumers remain vigilant about spending.
On the basis of the report, including
Time project, Office Depot delivered a loss of 5 cents per share, compared to 7 cents this yearago quarter.
Total Office Depot revenue is $2,973.
$0 is less than $2,979 estimated by the Zacks Consensus.
0 million and 3.
2% before the distance-
Sales fell in each business unit.
\\ Sales and occupancy rate decreased by 2.
9%, while general and administrative costs fell slightly by 1. 4%.
At the same time, the operating and sales expenses of stores and warehouses rose slightly by 0. 6%.
In the first quarter, North American retail revenue fell by 2. 0% to $1,320. 6 million. Same-
Store sales fell 1% compared to previousyear quarter.
Office Depot hinted that the number of customer transactions decreased compared with last year
In the previous quarter, but in the reported quarter, the average order value rose slightly.
The department reported operating profit of $58.
Compared to $73, it is 0 million.
Million before-year quarter.
The reduction in sales and the increase in marketing costs have affected the company\'s operating profit.
By the end of the quarter, the total number of stores in the North American retail sector was 1,141.
This quarter, the company opened 1, closed 7 stores and relocated 2 stores.
Revenue from business solutions in North America has also declined. 0% to $806.
2 million, due to the decline in the number of customer transactions.
The average order value remained flat compared to the year-ago quarter.
Operating profit fell by 19. 8% to $16.
2 million, sales fell and costs rose.
Revenue from international divisions plummeted. 0% to $846. 1 million (in U. S. dollar terms).
The department reported operating profit of $27.
3 million, down 34.
4% before the distance-
Reflects the lower gross profit margin quarter.
Other financial details soffice Depot is the operator of office supplies stores under brands such as office Depot, Foray, Ativa, Break Escapes, Worklife and Christopher Lowell, generating $123
Compared with positive free cash flow of $11, this quarter was 2 million.
2 million before-year period.
As of this quarter, the company had $494 in cash and cash equivalents. Length 2 million
Long-term debt of $657. 0 million (Reflect debtto-
The capitalization ratio is 47. 5%)
Shareholder equity is $725.
8 million, excluding non-
A controlling stake of $0. 5 million.
Capital expenditure for the quarter was $28. 6 million.
Zacks Investment Research ViewOffice Depot recently announced that it will close its nine existing stores in Canada on June 11.
In addition, the company claims that the move is part of its initiative to enhance its growth prospects by reducing investment in sectors that no longer make significant contributions to its long termterm growth.
Office Depot repositioned itself to remain operational in a difficult consumer environment.
The company is controlling costs, shutting down poorly performing stores and reducing the risk of rising dollars --
The value of inventory items, non-
Key distribution facilities and focus on delivering innovative products and services are expected to help improve profit margins.
Office Depot completed its acquisition of Swedish Office supplies company Svanstroms Gruppen in February 2011.
The acquisition will help Office Depot expand its market share in Europe and make it one of Sweden\'s leading Office supplies companies.
However, we remain cautious about the slow recovery.
So consumers and small businesses are big on them-
Tickets for business machines and other durable products.
We have observed that the demand for office products is closely related to economic health.
Considering the pros and cons, we prefer to keep the long term
The \"neutral\" rating of the stock.
Office Warehouse competing with Staples(NasdaqGS: SPLS-News)
And Office Max. (NYSE: OMX -News)
, Has the Zacks #3 ranking, which means
The word \"reserved\" proposal.
Sales short term office warehouse-ticket ODPSell entry: 4. 93 to 4. 59Stop-Loss: 5.
33. Profit margin: 3. 73 to 3. 66, 3. 43 to 3. 47, 2. 25 to 2.
Office Warehouse Company Profile office warehouse company
Provide office products and services with subsidiaries.
Its North American Retail division sells a variety of goods, such as General office supplies, computer supplies, commercial machines and related supplies, as well as office furniture under various labels, includes office warehouses, Viking Office Products, Foray, Ativa, Break Escapes, Niceday and work life through its office supply chain stores.
Services such as printing, copying, mailing, shipping, and personal computer support and network installation services are also available.
As of December 25, 2010, the department operated 1,147 office supplies stores in the United States and Canada.
The company\'s North American business solutions division sells office supplies, technical products, furniture and services for national and private brands to small businessesto medium-
Determine the size of the customer through a dedicated sales team, catalog and Internet.
Its international division uses the company\'s portfolio to sell office products and services through direct mail catalogues, contract salespeople, Internet sites and retail stores
Own business, joint venture, licensing and franchise agreements, alliances and other arrangements.
As of December 25, 2010, the company has sold office products to customers in 53 countries in North America, Europe, Asia and Latin America.
This department is through
Own or majority-
Entities owned in France, Hungary, South Korea and Sweden, 97 retail stores;
And participate in licensing and commodity arrangements in Korea, Thailand, India, Israel, Japan and the Middle East.
Founded in 1986, the company is based in Boca Raton, Florida.