By Roshan Fernandez
Shares of ODP rose Wednesday after the office supplies company reported first-quarter sales and earnings per share that beat Wall Street expectations.
Shares climbed 12% to $15.27 though the stock is down about 71% in the past 52 weeks.
The parent company of Office Depot and OfficeMax swung to a first-quarter loss of $29 million, or 97 cents a share, compared with a profit of $15 million, or 40 cents a share, a year earlier.
The loss was partially due to $48 million in restructuring expenses that were part of the company's plan to optimize for growth.
Excluding one-time items, per-share earnings were $1.06, above the 65 cents per share that analysts were expecting, according to FactSet.
Revenue fell to $1.7 billion from $1.87 billion in the year-ago quarter. Analysts were expecting $1.67 billion.
The decrease in first-quarter sales was largely due to lower sales in the Office Depot division, which had 46 fewer retail locations than the year-ago quarter and saw reduced retail and online consumer traffic.
The Boca Raton, Fla.-based company said the market for business-to-business distribution remains soft, but the pace of customer onboarding is beginning to accelerate.
ODP's "Optimize For Growth" strategy targets higher-growth B2B opportunities, while expanding into new sectors like hospitality and healthcare, the company said.
Write to Roshan Fernandez at roshan.fernandez@wsj.com
(END) Dow Jones Newswires
May 07, 2025 10:37 ET (14:37 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.