“Our results in the quarter were below expectations, primarily driven by our retail division, as challenging macroeconomic conditions impacted our performance,” said Gerry Smith, chief executive officer of The ODP Corporation. 

  • Third Quarter Revenue of $1.8 Billion with GAAP EPS of $2.04; Adjusted EPS of $0.71
  • Significant New Business Wins Improving Future Growth Profile
  • Progress on B2B Pivot; Pursuing Core Opportunities in New Adjacent Industry Segments
  • Company Repurchased Approximately $295 Million of Shares Year to Date
  • Company Completes Varis Sale Subsequent to Quarter End

The ODP Corporation reported below-expected results in Q3, primarily due to challenging macroeconomic conditions. The company’s retail division was impacted by more cautious consumer and business spending, which negatively affected demand in its B2C and B2B divisions during the highly competitive back-to-school season. Major hurricanes further impacted the customer base and operations in its largest service areas. 

Despite these challenges, The ODP Corporation is making significant progress on its B2B pivot and initiatives to improve top-line trends. The company is leveraging its differentiated core strengths to focus on higher growth B2B opportunities, with promising traction at ODP Business Solutions and Veyer Divisions. Veyer is attracting new third-party relationships, including launching service for a social media-focused e-commerce platform. 

Business Solutions secured one of the largest multi-year B2B contracts in its history, potentially generating up to $1.5 billion in revenue over a 10-year period. The company is also actively pursuing opportunities in new, higher growth, adjacent industry segments, building key distribution relationships that highlight its supply chain proficiency, ability to supply products beyond office supplies, and commitment to service excellence. 

The company is allocating capital to fast-forward investments in its core business to capture growth opportunities and generate the highest return for shareholders.

Source: Business Wire
Source: Yahoo Finance
Source: ODP