Office Depot CEO Says It Can Mitigate Potential Tariffs Impact After Q1 Profit Dip
The ODP Corporation (NASDAQ:ODP) shares are trading higher on Wednesday after the first-quarter FY25 earnings. The company reported first-quarter revenue decline of 9.1% year-on-year to $1.70 billion, beating the analyst consensus estimate of $1.67 billion.
The decrease in reported sales is largely related to lower sales in its Office Depot Division, primarily due to 46 fewer retail locations in service compared to the previous year and reduced retail and online consumer traffic, as well as lower sales in its ODP Business Solutions Division.
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Gross profit decreased 11.8% to $360 million with a margin of 21.2%. Selling, general and administrative expenses dropped 10.3% to $306 million.
The company reported an operating loss of $32 million compared to an operating income of $41 million, a 178% decrease.
Adjusted EBITDA for the quarter decreased 16.5% to $76 million. Adjusted EPS of $1.06 beat the analyst consensus estimate of $0.65. It fell 19% year-on-year from $1.31.
Operating cash flow for the quarter totaled $57 million with a free cash flow of $36 million.
The company held $185 million in cash and equivalents as of March 29. Total debt was $262 million.
"We are off to a better start to the year, with our overall performance reflecting positive momentum and improving trends in the first quarter," said CEO Gerry Smith.
'We're also closely monitoring the tariff environment, and while we are not immune to shifts in policy, we have taken actions to help mitigate potential impacts.'
Price Action: ODP shares traded higher by 1.17% to $13.79 at the last check on Wednesday.
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This article Office Depot CEO Says It Can Mitigate Potential Tariffs Impact After Q1 Profit Dip originally appeared on Benzinga.com
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