1 November 2007 — Naperville (IL): OfficeMax Q3 2007 total sales increased by 3.2 percent to $2.3 billion, compared to $2.2 billion in a year earlier.
Meanwhile, OfficeMax’s Q3 net income has dramatically risen by 61 percent to $49 million, or EPS of $0.64, compared to $30.4 million, or EPS of $0.41, last year. The company’s 2006 Q3 results were adversely affected by significant operating expenses.
The company’s contract segment sales increased by 2.4 percent to $1.2 billion during the quarter, compared to Q3 2006. US contract sales declined in Q3 2007 compared to the prior year period, primarily due to lower sales from existing customer accounts and from the company’s initiative to be more disciplined in new account acquisition.
Q3 retail segment sales increased by four percent to $1.1 billion compared to a year earlier. The company said that retail same-store sales in Q3 2007 were favourably impacted by same-store sales growth in technology categories and ImPress, partially offset by same-store sales declines in core office supplies and furniture categories. It also stated that Q3 retail sales trends reflected moderate improvement in Back-to-School season sales and some weakness in consumer and small business customer purchases.
Sam Duncan, chairman and CEO, said: "While we are pleased to have made progress in our 2007 turnaround initiatives, opportunities remain across our business for improvement. We are focused on driving profitable sales, controlling expenses, and increasing operating margin.
"In our contract segment, we continue to instil discipline in signing on new accounts, enable cost savings to our customers and better profitability to OfficeMax, and position us for aggressive middle market sales growth. In our retail segment, we remain committed to effective category management and promotional strategies, controlling and leveraging costs, and implementing our real estate strategy."