Office Depot reports sales declines
| 28 February, 2018
Office Depot has announced results for the fourth quarter and full year ended December 30, 2017. Total reported sales for the fourth quarter of 2017 were $2.6 billion compared to $2.7 billion in the fourth quarter of 2016, a decrease of 5%.
Sales for the full year 2017 were $10.2 billion, a decline of 7% compared to the prior year.
“I’m pleased that we delivered strong fourth quarter results and achieved full year 2017 adjusted operating income that exceeded our most recent outlook, despite significant revenue pressure throughout the year,” said Gerry Smith, chief executive officer of Office Depot.
“Fourth quarter sales trends in the Business Solutions Division continued to improve sequentially and we also saw relative improvement in store traffic recently as a result of strategic shifts in our offer and marketing mix. We are encouraged to see our initiatives to transform the Company beginning to gain traction, including our ability to generate Free Cash Flow to fund these future growth engines.”
Retail Division reported sales were $1.2 billion in the fourth quarter of 2017. Fourth quarter 2017 comparable sales declined 4% versus the prior year primarily driven by fewer transactions and lower average order values. Business Solutions Division reported sales were $1.3 billion in the fourth quarter of 2017, a decline of 7% compared to the fourth quarter of 2016.
Office Depot successfully closed on the sale of its business in Australia on February 5, 2018. The Company’s sale of the remaining discontinued operation in New Zealand remains subject to obtaining necessary regulatory approvals.