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Office Depot Inc. (ODP)

  • Tue, Feb. 24, 9:38 AM
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  • Tue, Feb. 24, 7:10 AM
    • Office Depot (NASDAQ:ODP) reports sales in the retail division fell 7.2% to $1.539B in Q4 on a pro forma basis which takes into consideration the OfficeMax merger.
    • The pro forma same-store sales comp was -2%.
    • Retail operating margin +240 bps to 1.0%.
    • North American Business Solutions Division sales -1% on a pro forma basis to $1.46B. Operating margin +300 bps to 4.5%.
    • International sales -4% to $834M. Operating margin +40 bps to 3.5%.
    • Due to the merger with Staples (NASDAQ:SPLS), guidance is withdrawn by the company, although it did say it expects total company sales to be lower in 2015.
    • Merger synergy benefits of $750M per year are forecast.
    • ODP +1.80% premarket.
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  • Tue, Feb. 24, 6:54 AM
    • Office Depot (NASDAQ:ODP): Q4 EPS of $0.07 beats by $0.03.
    • Revenue of $3.83B (-5.7% Y/Y) misses by $80M.
    • Shares +2.33% PM.
    • Press Release
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  • Mon, Feb. 23, 5:30 PM
  • Fri, Feb. 13, 11:13 AM
    • Office Depot (NASDAQ:ODP) trades at $9.59 to mark a 12.8% discount to the deal price it struck with Staples (NASDAQ:SPLS).
    • The lackluster response of shares is due in part to apprehension the FTC will get in the way of the combination.
    • Retail Dive notes Staples can walk away from the deal if regulators require too many stores to be divested.
    • Staples is down 10.7% since the acquisition was announced from an initial pre-announcement pop.
  • Thu, Feb. 5, 10:14 AM
    • Janney Capital thinks Staples (NASDAQ:SPLS) was a little conservative when it estimated $1.6B in deal synergies from a merger with Office Depot (NASDAQ:ODP).
    • The investment firm sees fair value on Staples at $22.
    • Other analysis on the deal isn't quite so optimistic.
    • Staples will inherit another 2K stores that collectively haven't put up a positive comp since 2007, notes Harvard professor Rajiv Lal.
    • Another breakdown: SA contributor Dallas Salazar
    • Previously: Staples acquires Office Depot for $6.3B (Feb. 04 2015)
    • Shares of Staples are up 0.84% to $16.91 today. Office Depot (ODP) is hanging steady at $9.47 vs. the implied deal price of $11.
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  • Wed, Feb. 4, 7:43 AM
    • Shares of Office Depot (NASDAQ:ODP) move higher in early trading after coming off of a trading halt.
    • Some investors appear to be cautious on concerns the merger will face a major regulatory roadblock.
    • ODP +7.2% to $9.95 premarket vs. $11.00 Staples (NASDAQ:SPLS) offer ($7.25 in cash + 0.2188 shares of SPLS).
    • SPLS -2.26% to $18.58.
    • Previously: Staples acquires Office Depot for $6.3B
  • Wed, Feb. 4, 7:09 AM
    • Staples (NASDAQ:SPLS) announces it will acquire Office Depot (NASDAQ:ODP) for $6.3B.
    • The transaction values Office Depot at $11.00 per share vs. yesterday's closing price of $9.28.
    • The company expects to generate at least $1B in annualized cost synergies.
    • A closing before the end of the year is anticipated after a regulatory review is completed.
    • Shares of ODP are currently halted.
  • Tue, Feb. 3, 12:47 PM
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  • Tue, Feb. 3, 12:17 PM
    • Retail space continues to open up as more companies look to trim their store counts or reposition themselves in front of mergers or bankruptcies.
    • In some cases, the transition is based on repositioning assets to online fulfillment centers.
    • A quick scan indicates Sears Holdings (NASDAQ:SHLD), J.C. Penney (NYSE:JCP), RadioShack (NYSE:RSH), Dollar Tree (NASDAQ:DLTR), Wet Seal (NASDAQ:WTSL), Macy's (NYSE:M), Haverty Furniture (NYSE:HVT), Bon-Ton Stores (NASDAQ:BONT), Aeropostale (NYSE:ARO), Rent-A-Center (NASDAQ:RCII), and Wolverine Worldwide (NYSE:WWW) are unloading properties.
    • Analysts have warned the flooded market could lead to some disappointing transaction prices or lease rates for the companies involved.
    • What to watch: A merger between Staples (NASDAQ:SPLS) and Office Depot (NASDAQ:ODP) or a major retooling from Best Buy (NYSE:BBY) this year could add to the tally.
  • Tue, Feb. 3, 10:09 AM
    • Shares of Office Depot (NASDAQ:ODP) are up 19.7% and Staples (NASDAQ:SPLS) has run up an 11% gain as investors discount any concerns that regulators will get in the way of an office supply store mega-merger.
    • Retail analysts think significant cost savings could be derived from a merger as the combined store count of the chains is reduced.
    • Staples has over 3.8K stores, while the Office Depot/OfficeMax count is over 2K.
    • Previously: Staples, Office Depot in advanced talks to combine
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  • Tue, Feb. 3, 2:03 AM
    • Facing pressure from activist investor Starboard Value, WSJ reports that Staples (NASDAQ:SPLS) and Office Depot (NASDAQ:ODP) are in advanced talks to merge.
    • Regulators nixed Staples' attempt to buy Office Depot in 1997, but the FTC approved Office Depot's $976M acquisition of OfficeMax in 2013 without the need to close any stores.
    • The price and structure of the proposed deal couldn’t be learned.
    • SPLS +5.2%; ODP +13% premarket
  • Tue, Jan. 20, 1:28 PM
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  • Tue, Jan. 20, 10:11 AM
  • Tue, Jan. 20, 9:15 AM
    • Staples (NASDAQ:SPLS) is under pressure from Starboard Value to explore a sale or merger with Office Depot (NASDAQ:ODP), according to Bloomberg.
    • SPLS +2.3% premarket and ODP +1.1%.
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  • Dec. 20, 2014, 10:17 AM
    • The S&P Retail ETF (NYSEARCA:XRT) is up 3.4% over the last month to outpace the S&P 500 Index as consumer spending trends improve. Analysts have honed in on some categories which show some promise for growth.
    • Drugstores: The transition by the sector into more health/wellness services sets it up for new growth channels. CVS Health (NYSE:CVS) reported strong comparable-store sales despite the full tobacco exit, while Rite Aid (NYSE:RAD) is prepping for a roll-out of RediClinics and HealthSpot kiosks. The visibility on Walgreen (NYSE:WAG) is somewhat clouded by the giant Alliance Boots integration, although it's ahead of rivals on the tech front with its rewards program, pharmacy app and developing online doctor concept.
    • Athleisure: There's some gender initiatives going on in the athletic apparel sector with Under Armour (NYSE:UA) and Nike (NYSE:NKE) growing their women's business and Lululemon (NASDAQ:LULU) expanding on the men's side. All three companies have been closely on-trend with their assortment in a category with explosive demand. Importantly, pricing has held up this holiday season in the U.S., note retail watchers.
    • Online replenishing: Fresh research into shopping trends indicates certain categories see continued buying through the online channel as consumers become attuned to a brand. Retailers positioned well to see more gains from the trend include Williams-Sonoma (NYSE:WSM), Ulta Beauty (NASDAQ:ULTA), Staples (NASDAQ:SPLS), Office Depot (NASDAQ:ODP), Sephora (OTCPK:LVMHF), Dick's Sporting Goods (NYSE:DKS), and of course Amazon (NASDAQ:AMZN).
    • P-E buyouts: There are plenty of candidates in the retail sector for a leveraged buyout similar to the action that helped propel shares of PetSmart (NASDAQ:PETM) +40% from their lows. Keep an eye on Abercrombie & Fitch (NYSE:ANF), Aeropostale (NYSE:ARO), and Ann (NYSE:ANN).
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Company Description
Office Depot Inc is a supplier of office products and services. It offers products including office supplies, paper, ink & tone, cleaning chemical & equipment's, monitors & equipment's, computers & tablets, office appliances, and school supplies.