Category: Consumer

Release – Steelcase Reports Third Quarter Fiscal 2025 Results

Posted on by aweinsoff@channelchek.com

Research News and Market Data on SCS

December 18, 2024

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  • Strong results compared to prior year including:
    • Revenue growth of 2% driven by 5% growth in the Americas
    • Gross margin improvement of 100 basis points
    • Total liquidity strengthened by $152 million
  • Americas posted order growth of 2% compared to prior year
  • Outlook for fiscal 2025 adjusted earnings per share exceeds company targets

GRAND RAPIDS, Mich., Dec. 18, 2024 (GLOBE NEWSWIRE) — Steelcase Inc. (NYSE: SCS) today reported third quarter revenue of $794.9 million, net income of $19.1 million, or $0.16 per share, and adjusted earnings per share of $0.30. In the prior year, Steelcase reported revenue of $777.9 million and net income of $30.8 million, or $0.26 per share, and had adjusted earnings per share of $0.29.

Revenue and order growth (decline) compared to the prior year were as follows:

Revenue grew 2 percent in the third quarter compared to the prior year, with 5 percent growth in the Americas and a 6 percent decline in International. On an organic basis, revenue grew 3 percent, with 7 percent growth in the Americas and an 8 percent decline in International. The Americas growth benefited from a higher percentage of the beginning backlog shipping during the quarter compared to the prior year and included higher revenue from government, large corporate, healthcare and education customers, while the International decline was driven by most markets in Asia Pacific, except India, and France.

Orders (adjusted for the impact of a divestiture and currency translation effects) declined modestly in the third quarter compared to the prior year, and included 2 percent growth in the Americas and an 8 percent decline in International. The order growth in the Americas was driven by government customers. Orders from large corporate customers strengthened in the last month of the quarter, but modestly declined overall in the third quarter compared to the prior year. The order decline in International was driven by most markets in Asia Pacific and France, net of growth in Germany and some smaller markets in EMEA.

“Our Americas business posted 7% organic revenue growth this quarter driven by growth across many of our customer segments, and we delivered higher than expected adjusted earnings per share,” said Sara Armbruster, president and CEO. “As we continue to focus on serving our customers and supporting their workplace strategies, we posted another quarter of order growth in the Americas, and we are pleased with the improved trends we saw from our large corporate customers near the end of the quarter and into December.”

Operating income (loss) and adjusted operating income (loss) were as follows:

Operating income of $41.0 million in the third quarter represented a decrease of $2.8 million compared to the prior year. The prior year included a $9.5 million benefit from a decrease in the valuation of an acquisition earnout liability and $5.4 million of gains on the sale of fixed assets, including land, in the Americas. The current year included the benefits of higher revenue and gross margin in the Americas compared to the prior year. Adjusted operating income of $47.3 million in the third quarter represented a decrease of $2.0 million compared to the prior year.

“Our International results in the third quarter were below our expectations and were impacted by demand and some customer-driven shipment delays,” said Dave Sylvester, senior vice president and CFO. “We implemented additional restructuring actions and other cost reduction measures during the third quarter, which together are projected to drive approximately $5 million of annualized cost savings by the start of fiscal 2026. Also, we are encouraged by higher project activity levels from some of our global customers in our international markets and recent wins related to large opportunities with national accounts in France, Germany and the Middle East.”

Gross margin of 33.4 percent in the third quarter represented an improvement of 100 basis points compared to the prior year driven by the benefits of revenue growth in the Americas and cost reduction initiatives, including savings from our previously announced restructuring actions.

Operating expenses of $223.8 million in the third quarter represented an increase of $17.3 million compared to the prior year. The prior year included favorable impacts of a $9.5 million decrease in the valuation of an acquisition earnout liability and $5.4 million of gains on the sale of fixed assets, including land. The remaining increase was driven by $6.0 million of higher employee costs, partially offset by a $4.4 million decrease from a divestiture.

Other expense, net of $12.6 million in the third quarter included a $15.2 million non-cash charge related to the annuitization of a pension plan.

Total liquidity, which is comprised of cash and cash equivalents, short-term investments and the cash surrender value of company-owned life insurance, aggregated to $576.6 million at the end of the third quarter and represented an increase of $152.0 million compared to the prior year. Total debt was $446.9 million. Trailing four quarter adjusted EBITDA of $283.6 million (or 9.0 percent of revenue) represented an increase of 9 percent compared to the prior year.

The Board of Directors has declared a quarterly cash dividend of $0.10 per share, to be paid on or before January 13, 2025, to shareholders of record as of December 30, 2024.

Outlook

At the end of the third quarter, the company’s backlog was approximately $664 million, which was 5 percent lower than the prior year. Orders in the first three weeks of the fourth quarter grew 15 percent compared to the prior year and included a number of large projects scheduled to ship beyond the end of the quarter. The company expects fourth quarter fiscal 2025 revenue, which contains an additional week compared to the prior year, to be in the range of $770 to $795 million. The company reported revenue of $775.2 million in the fourth quarter of fiscal 2024. The projected revenue range translates to a decline of 1 percent to growth of 3 percent compared to the prior year, or a decline of 4 to 7 percent on an organic basis.

The company expects to report earnings per share of between $0.17 to $0.21 for the fourth quarter of fiscal 2025 and adjusted earnings per share of between $0.20 to $0.24. The company reported earnings per share of $0.18 and adjusted earnings per share of $0.23 in the fourth quarter of fiscal 2024.

The fourth quarter estimates include:

  • gross margin of approximately 33.5 percent,
  • projected operating expenses of between $230 to $235 million, which includes $4.3 million of amortization of purchased intangible assets,
  • projected interest expense, net of investment income and other income, net, of approximately $1 million and
  • a projected effective tax rate of approximately 27 percent.

“As work and work patterns continue to change, we remain focused on developing new solutions and evolving our capabilities to better serve our customers and dealers,” said Sara Armbruster. “Our teams have successfully driven higher levels of profitability all year and we are pleased that our fiscal 2025 adjusted earnings per share are projected to finish above our target.”

Business Segment Footnotes

  1. The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America with a comprehensive portfolio of furniture, architectural, textile and surface imaging products that are marketed to corporate, government, healthcare, education and retail customers primarily through the Steelcase, AMQ, Coalesse, Designtex, HALCON, Orangebox, Smith System and Viccarbe brands.
  2. The International segment serves customers in EMEA and Asia Pacific with a comprehensive portfolio of furniture and architectural products that are marketed to corporate, government, healthcare, education and retail customers primarily through the Steelcase, Coalesse, Orangebox, Smith System and Viccarbe brands.

Webcast

Steelcase will discuss third quarter results and business outlook on a conference call at 8:30 a.m. Eastern time tomorrow. Listeners may access the conference call at http://ir.steelcase.com.

Non-GAAP Financial Measures

This earnings release contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the condensed consolidated statements of income, balance sheets or statements of cash flows of the company. The non-GAAP financial measures used are (1) organic revenue growth (decline), (2) adjusted operating income (loss), (3) adjusted earnings per share and (4) adjusted EBITDA. Pursuant to the requirements of Regulation G, the company has provided a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure in the tables above. These measures are supplemental to, and should be used in conjunction with, the most comparable GAAP measures. Management uses these non-GAAP financial measures to monitor and evaluate financial results and trends.

Organic Revenue Growth (Decline)

The company defines organic revenue growth (decline) as revenue growth (decline) excluding the impact of acquisitions and divestitures and foreign currency translation effects. Organic revenue growth (decline) is calculated by adjusting prior year revenue to include revenues of acquired companies prior to the date of the company’s acquisition, to exclude revenues of divested companies and to use current year average exchange rates in the calculation of foreign-denominated revenue. The company believes organic revenue growth (decline) is a meaningful metric to investors as it provides a more consistent comparison of the company’s revenue to prior periods as well as to industry peers.

Adjusted Operating Income (Loss) and Adjusted Earnings Per Share

The company defines adjusted operating income (loss) as operating income (loss) excluding amortization of purchased intangible assets, restructuring costs (benefits) and gains (losses) on the sale of land, net of variable compensation impacts. The company defines adjusted earnings per share as earnings per share excluding amortization of purchased intangible assets, restructuring costs (benefits), gains (losses) on the sale of land, net of variable compensation impacts, and gains (losses) on pension plan settlements, and the related income tax effects of these items.

Amortization of purchased intangible assets: The company may record intangible assets (such as backlog, dealer relationships, trademarks, know-how and designs and proprietary technology) when it acquires companies. The company allocates the fair value of purchase consideration to net tangible and intangible assets acquired based on their estimated fair values. The fair value estimates for these intangible assets require management to make significant estimates and assumptions, which include the useful lives of intangible assets. The company believes that adjusting for amortization of purchased intangible assets provides a more consistent comparison of its operating performance to prior periods as well as to industry peers.

Restructuring costs (benefits): Restructuring costs (benefits) may be recorded as the company’s business strategies change or in response to changing market trends and economic conditions. The company believes that adjusting for restructuring costs (benefits), which are primarily associated with business exit and workforce reduction costs, provides a more consistent comparison of its operating performance to prior periods as well as to industry peers.

Gains (losses) on the sale of land, net of variable compensation impacts: We may sell land when conditions are favorable. Gains and losses on the sale of land may increase or decrease, respectively, our variable compensation expense. We believe adjusting for these items provides a more consistent comparison of our operating performance to prior periods as well as to industry peers. In Q2 2025, we began adjusting for these items, as we realized a significant gain on the sale of land during the quarter which had a significant impact on our variable compensation expense, and we have adjusted the prior periods presented for consistency and comparability.

Gains (losses) on pension plan settlements: We realize gains or losses previously reported as unrealized in Accumulated other comprehensive income (loss) in Other income (expense), net, in connection with pension plan settlements when all risks related to the benefit obligations to plan participants and plan assets are transferred. We believe adjusting for the gains or losses on pension plan settlements provides a more consistent comparison of our operating performance to prior periods as well as to industry peers.

Adjusted EBITDA

The company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization (“EBITDA”) adjusted to exclude share-based compensation, restructuring costs (benefits), gains (losses) on the sale of land, net of variable compensation impacts, and gains (losses) on pension plan settlements. The company believes adjusted EBITDA provides investors with useful information regarding the operating profitability of the company as well as a useful comparison to other companies. EBITDA is a measurement commonly used in capital markets to value companies and is used by the company’s lenders and rating agencies to evaluate its performance. The company adjusts EBITDA for share-based compensation as it represents a significant non-cash item which impacts its earnings. The company also adjusts EBITDA for restructuring costs, gains (losses) on the sale of land, net of variable compensation impacts, and gains (losses) on pension plan settlements to provide a more consistent comparison of its earnings to prior periods as well as to industry peers.

Forward-looking Statements

From time to time, in written and oral statements, the company discusses its expectations regarding future events and its plans and objectives for future operations. These forward-looking statements discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to the company, based on current beliefs of management as well as assumptions made by, and information currently available to, the company. Forward-looking statements generally are accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “possible,” “potential,” “predict,” “project,” “target” or other similar words, phrases or expressions. Although the company believes these forward-looking statements are reasonable, they are based upon a number of assumptions concerning future conditions, any or all of which may ultimately prove to be inaccurate. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements and vary from the company’s expectations because of factors such as, but not limited to, competitive and general economic conditions domestically and internationally; acts of terrorism, war, governmental action, natural disasters, pandemics and other Force Majeure events; cyberattacks; changes in the legal and regulatory environment; changes in raw material, commodity and other input costs; currency fluctuations; changes in customer demand; and the other risks and contingencies detailed in the company’s most recent Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. Steelcase undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

About Steelcase Inc.

Established in 1912, Steelcase is a global design, research and thought leader in the world of work. We help people do their best work by creating places that work better. Along with more than 30 creative and technology partner brands, we design and manufacture furnishings and solutions for the many places where work happens – including learning, health and work from home. Our solutions come to life through our community of expert Steelcase dealers in approximately 770 locations, as well as our online Steelcase store and other retail partners. Founded in Grand Rapids, Michigan, Steelcase is a publicly traded company with fiscal year 2024 revenue of $3.2 billion. With approximately 11,300 global employees and our dealer community, we come together for people and the planet – using our business to help the world work better.

(1) These amounts include restricted cash of $7.3 and $6.8 as of February 23, 2024 and February 24, 2023, respectively.
 
(2) These amounts include restricted cash of $7.2 and $7.1 as of November 22, 2024 and November 24, 2023, respectively.
 
Restricted cash primarily represents funds held in escrow for potential future workers’ compensation and product liability claims. The restricted cash balance is included as part ofOther assetson the Condensed Consolidated Balance Sheets.
CONTACT:Investor Contact:
 Mike O’Meara
 Investor Relations
 ir@steelcase.com
  
 Media Contact:
 Brodie Bertrand
 Corporate Communications
 communications@steelcase.com
  
Source: Steelcase 

Release – ACCO Brands Corporation Declares Quarterly Dividend

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ACCO

02/14/2025

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that its board of directors has declared a quarterly cash dividend of $0.075 per share. The dividend will be paid on March 26, 2025 to stockholders of record as of the close of business on March 14, 2025.

“This is the Company’s 29th quarterly cash dividend since it began paying dividends in 2018. The Company’s dividend has become an important part of our capital allocation strategy, and we remain committed to supporting our quarterly dividend with our robust free cash flow. At the current stock price, on an annualized basis, our shareholders are receiving an approximate 6% yield on their investment,” said Tom Tedford, President, and Chief Executive Officer of ACCO Brands.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn and play. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Chris McGinnis
Investor Relations
(847) 796-4320

Kori Reed
Media Relations
(224) 501-0406

Source: ACCO Brands Corporation

Release – CVG Appoints Scott Reed as Chief Operating Officer

Posted on by aweinsoff@channelchek.com

Research News and Market Data on CVGI

February 13, 2025

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NEW ALBANY, Ohio, Feb. 13, 2025 (GLOBE NEWSWIRE) — Commercial Vehicle Group (the “Company” or “CVG”) (NASDAQ: CVGI), a diversified industrial products and services company, is pleased to announce the appointment of Scott Reed as Chief Operating Officer, effective February 13, 2025. Mr. Reed comes to CVG with more than 30 years of diverse business and leadership experience in industrial and manufacturing organizations.

In his new role, Mr. Reed will oversee the global manufacturing and supply chain operations of the company, driving operational excellence and strengthening cross-functional alignment across planning and execution, ensuring that our operational processes are aligned with our strategic goals. He will report to James Ray, President and CEO of CVG, and serve on the executive leadership team.

“We are thrilled to welcome Scott to our executive leadership team,” said Mr. Ray. “His extensive background in operations and strategic leadership aligns perfectly with our mission to optimize our business operations and enhance our value proposition. We believe Scott’s vision and expertise will accelerate our growth and help us to deliver outstanding results.”

Before joining CVG, Mr. Reed served as President of Arrow Tru-Line Inc., the largest manufacturer and supplier of structural hardware components to the North American residential and commercial overhead garage door market. He also held operations leadership roles at Peterson Spring, Unique Fabricating, Inc., GT Technologies, Inc. and Lear Corporation. He is recognized for his ability to deliver year-over-year success in achieving operational, profit, and business growth objectives, as well as building, motivating, and leading culturally diverse worldwide operating teams.

“I am excited to join CVG and look forward to working with the team to drive continued operational excellence across our global operations footprint,” said Mr. Reed. “I am confident that together we will continue to strengthen the company’s position in the market and achieve success.”

Mr. Reed holds a bachelor’s degree in business administration from Cleary University.

As a material inducement to Mr. Reed joining the Company, the Compensation Committee of the Board of Directors approved the grant of the following inducement equity awards (collectively, the Inducement Awards), granted outside the Company’s stockholder-approved 2020 equity incentive plan: (i) 58,331 shares of time-vesting restricted stock, which will vest ratably on March 31, 2026, 2027 and 2028; and (ii) 87,497 performance shares, that will vest and be paid in cash if performance metrics are met, aligning the interests of Mr. Reed with the interests of the Company’s shareholders.

In addition to welcoming Mr. Reed, the Company is announcing the departure of Don Fishel, President, Trim Systems and Components, after 14 years with CVG. “We are grateful for Don’s leadership and contributions during his time at CVG,” said Mr. Ray. “He played an integral role in CVG’s growth and success, and we wish him well in his future endeavors. We are confident that the leadership team will continue to drive our company forward as we execute our vision and strategy.”

We expect to conduct a search for a new permanent leader for our Trim Systems and Components business. In the interim, Andy Cheung will oversee the Trim Systems and Components business, in addition to his current CFO responsibilities.

About CVG

At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve. Information about CVG and its products is available at www.cvgrp.com.

Investor Relations Contact:
Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com

Media Contact:
Patrick Woolford
Director, Communications
Patrick.Woolford@cvgrp.com

Primary Logo

Source: Commercial Vehicle Group, Inc.

Release – The ODP Corporation to Announce Fourth Quarter & Full Year 2024 Results Wednesday, February 26, 2025

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ODP

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BOCA RATON, Fla.–(BUSINESS WIRE)–Feb. 12, 2025– The ODP Corporation (NASDAQ:ODP) (“ODP,” or the “Company”), a leading provider of products, services, and technology solutions to businesses and consumers, will announce fourth quarter and full year 2024 financial results before the market open on Wednesday, February 26th, 2025. The ODP Corporation will webcast a call with financial analysts and investors that day at 9:00 am Eastern Time which will be accessible to the media and the general public.

To listen to the conference call via webcast, please visit The ODP Corporation’s Investor Relations website at investor.theodpcorp.com. A replay of the webcast will be available approximately two hours following the event. A copy of the earnings press release, supplemental financial disclosures and presentation will also be available on the website.

About The ODP Corporation
The ODP Corporation (NASDAQ:ODP) is a leading provider of products and services through an integrated business-to-business (B2B) distribution platform and omnichannel presence, which includes world-class supply chain and distribution operations, dedicated sales professionals, online presence and a network of Office Depot and OfficeMax retail stores. Through its operating companies Office Depot, LLC; ODP Business Solutions, LLC; and Veyer, LLC, The ODP Corporation empowers every business, professional, and consumer to achieve more every day. For more information, visit theodpcorp.com.

ODP and ODP Business Solutions are trademarks of ODP Business Solutions, LLC. Office Depot is a trademark of The Office Club, LLC. OfficeMax is a trademark of OMX, Inc. Veyer is a trademark of Veyer, LLC. Grand&Toy is a trademark of Grand & Toy, LLC in Canada. Any other product or company names mentioned herein are the trademarks of their respective owners.

Tim Perrott
Investor Relations
561-438-4629
Tim.Perrott@theodpcorp.com

Source: The ODP Corporation

Prebiotic Soda Brand Olipop Valued at $1.85 Billion in Latest Funding Round

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Olipop raised $50 million in a Series C funding round, valuing the prebiotic soda brand at $1.85 billion as it competes with rivals such as Poppi.
– Olipop is now the top nonalcoholic beverage brand in the U.S., both by dollar sales and unit growth, according to data from Circana/SPINS.
– The company is now profitable, with annual sales surpassing $400 million last year.

Prebiotic soda brand Olipop announced Wednesday that it had secured a $50 million investment in its latest Series C funding round, bringing its valuation to an impressive $1.85 billion. The funding marks a significant milestone for the brand, which has been rapidly growing in the competitive functional beverage market.

Founded in 2018, Olipop has played a pivotal role in popularizing prebiotic sodas, offering consumers a gut-health-focused alternative to traditional soft drinks. Alongside competitor Poppi, Olipop has successfully tapped into the wellness trend sweeping the beverage industry, positioning itself as a healthier alternative to mainstream sodas.

The latest investment round was led by J.P. Morgan Private Capital’s Growth Equity Partners, reflecting strong investor confidence in the brand’s future. Olipop intends to use the fresh capital to expand its product lineup, increase marketing efforts, and enhance distribution channels, ensuring wider availability of its sodas across the U.S. and beyond.

A Market Leader in Functional Beverages

Olipop has swiftly risen to dominance, becoming the top nonalcoholic beverage brand in the U.S. based on both dollar sales and unit growth, according to Circana/SPINS data. The company reports that approximately half of its growth stems from consumers switching from traditional soda brands, while the other half comes from new entrants into the carbonated beverage market. Notably, one in four Gen Z consumers has tried Olipop, highlighting its appeal among younger demographics.

A key factor in Olipop’s success has been its strategic branding and marketing, which emphasize its natural ingredients and gut-health benefits. The brand’s product formulations incorporate prebiotic fibers, botanicals, and plant-based ingredients, catering to health-conscious consumers seeking flavorful yet functional beverages.

Financial Growth and Profitability

Olipop reached profitability in early 2024, a significant achievement for a relatively young brand. Annual sales exceeded $400 million last year, doubling from the previous year. This rapid financial growth has attracted attention from major players in the beverage industry, with Olipop’s founder and CEO Ben Goodwin revealing that soda giants PepsiCo and Coca-Cola have already expressed interest in potential acquisition deals.

Competition and Industry Trends

Despite Olipop’s success, competition in the prebiotic soda space remains fierce. Poppi, a direct rival founded a decade ago, has also seen substantial growth. The company had raised $39.3 million as of 2023 at an undisclosed valuation, and its annual sales reportedly surpassed $100 million last year. Poppi gained widespread recognition with its Super Bowl advertisements in consecutive years, solidifying its presence in the category.

However, Poppi has faced challenges, including legal scrutiny over its health claims. The company is currently negotiating a settlement in a lawsuit alleging that its marketing misrepresented the true health benefits of its beverages.

As the functional beverage market continues to expand, Olipop’s latest funding round positions it strongly for future growth, allowing it to scale operations and maintain its leadership in the rapidly evolving industry.

January Inflation Data Complicates Fed Plans as Rising Costs Pressure Consumers

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– The Consumer Price Index (CPI) increased 3% year-over-year in January, exceeding expectations and accelerating from December’s 2.9%.
– Rising energy costs and food prices, particularly eggs, contributed to the largest monthly headline increase since August 2023.
– The Federal Reserve faces challenges in determining interest rate cuts, as inflation remains above its 2% target.

Newly released inflation data for January revealed that consumer prices rose at a faster-than-expected pace, complicating the Federal Reserve’s path forward. The Consumer Price Index (CPI) increased by 3% over the previous year, ticking up from December’s 2.9% annual gain. On a monthly basis, prices climbed 0.5%, marking the largest monthly increase since August 2023 and outpacing economists’ expectations of 0.3%.

Energy costs and persistent food inflation played a significant role in driving the index higher. Egg prices, in particular, surged by a staggering 15.2% in January—the largest monthly jump since June 2015—contributing to a 53% annual increase. Meanwhile, core inflation, which excludes volatile food and energy prices, rose 0.4% month-over-month, reversing December’s easing trend and posting the biggest monthly rise since April 2023.

The stickiness in core inflation remains a concern for policymakers. Shelter and service-related costs, including insurance and medical care, continue to pressure consumers despite some signs of moderation. Shelter inflation increased 4.4% annually, the smallest 12-month gain in three years. Rental price growth also showed signs of cooling, marking its slowest annual increase since early 2022. However, used car prices saw another sharp uptick, rising 2.2% in January after consecutive increases in the prior three months, further fueling inflationary pressures.

Federal Reserve officials have maintained that they will closely monitor inflation data before making any adjustments to interest rates. The central bank’s 2% target remains elusive, and the higher-than-expected January data adds another layer of complexity to future rate decisions. Economists caution that while seasonal factors and one-time influences may have played a role in January’s inflation spike, the persistence of elevated core inflation suggests that rate cuts could be delayed.

Claudia Sahm, chief economist at New Century Advisors and former Federal Reserve economist, described the report as a setback. “This is not a good print,” she said, adding that January’s inflation surprises have been a recurring theme in recent years. She noted that while this does not derail the broader disinflationary trend, it does reinforce the need for patience in assessing future rate adjustments.

The economic outlook is further complicated by recent trade policies. President Donald Trump’s imposition of 25% tariffs on steel and aluminum imports, along with upcoming tariffs on Mexico, Canada, and China, raises concerns about potential cost pressures on goods and supply chains. Market reactions were swift, with traders adjusting expectations for the Fed’s first rate cut and stocks selling off in response.

While the Federal Reserve is unlikely to react to a single month’s data, the latest inflation report suggests that policymakers will need to see consistent progress before considering rate reductions. Analysts now anticipate that any potential rate cuts may be pushed into the second half of the year, dependent on future inflation trends.

Hyatt Expands All-Inclusive Dominance with $2.6 Billion Acquisition of Playa Hotels & Resorts

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Hyatt to acquire Playa Hotels & Resorts for $2.6 billion, including $900 million in debt.
– The deal expands Hyatt’s all-inclusive footprint across Mexico, the Dominican Republic, and Jamaica.
– Hyatt plans to maintain an asset-light model by selling Playa’s owned properties post-acquisition.

Hyatt Hotels Corporation (NYSE: H) has announced a definitive agreement to acquire Playa Hotels & Resorts N.V. (NASDAQ: PLYA) in a transaction valued at approximately $2.6 billion, including $900 million in debt. This move solidifies Hyatt’s dominance in the all-inclusive resort sector while expanding its footprint across key markets in Mexico, the Dominican Republic, and Jamaica.

Since its initial investment in Playa in 2013, Hyatt has leveraged its relationship to establish the Hyatt Ziva and Hyatt Zilara brands. Playa currently owns and operates eight of Hyatt’s all-inclusive resorts, and this acquisition will allow Hyatt to take full control of these properties, securing long-term management agreements and reinforcing its presence in the luxury all-inclusive space.

“Hyatt has firmly established itself as a leader in the all-inclusive space,” said Mark Hoplamazian, President and CEO of Hyatt. “This pending transaction allows us to broaden our portfolio while providing more value to all of our stakeholders through an expanded management platform for all-inclusive resorts.”

With Playa’s diverse portfolio of high-end resorts, the acquisition enhances Hyatt’s distribution channels, incorporating Playa’s properties into Hyatt’s expansive network. Hyatt’s ALG Vacations and Unlimited Vacation Club will further drive guest engagement and maximize revenue potential across the brand’s growing all-inclusive segment.

Hyatt’s latest acquisition aligns with its aggressive growth strategy in the all-inclusive segment. The company previously acquired Apple Leisure Group in 2021 and completed a joint venture with Grupo Piñero in 2024, adding the Bahia Principe Hotels & Resorts portfolio to its Inclusive Collection. Hyatt now boasts a formidable presence in Latin America, the Caribbean, and Europe, with approximately 55,000 rooms across its all-inclusive brands.

Despite the acquisition, Hyatt remains committed to its asset-light business model. The company plans to sell Playa’s owned properties and expects to generate at least $2.0 billion from asset sales by 2027. Hyatt anticipates that asset-light earnings will exceed 90% on a pro forma basis by that time.

Hyatt intends to fund the acquisition entirely through new debt financing and aims to pay down over 80% of the new debt with proceeds from asset sales. The deal is expected to close later this year, subject to regulatory and Playa shareholder approval.

The transaction has received backing from leading financial institutions, with BDT & MSD Partners serving as lead financial advisor to Hyatt. Berkadia is acting as Hyatt’s real estate advisor, while BofA Securities, J.P. Morgan, and Wells Fargo have provided fully committed bridge financing.

With this acquisition, Hyatt continues to reinforce its leadership in the luxury all-inclusive market, ensuring greater value for guests, stakeholders, and investors alike.

Release – ACCO Brands Corporation Announces Fourth Quarter and Full Year 2024 Earnings Webcast

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ACCO

02/07/2025

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that it will release its fourth quarter and full year 2024 earnings after the market close on February 20, 2025. The Company will host a conference call and webcast to discuss the results on February 21 at 8:30 a.m. EST. The webcast can be accessed through the Investor Relations section of www.accobrands.com and will be available for replay.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn and play. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Christopher McGinnis 
Investor Relations 
(847) 796-4320 

Kori Reed
Media Relations
(224) 501-0406

Source: ACCO Brands Corporation

Lucky Strike Entertainment (LUCK) – Expecting a Stronger Finish

Posted on by cpereira@noblefcm.com


Thursday, February 06, 2025

Lucky Strike Entertainment is one of the world’s premier location-based entertainment platforms. With over 360 locations across North America, Lucky Strike Entertainment provides experiential offerings in bowling, amusements, water parks, and family entertainment centers. The company also owns the Professional Bowlers Association, the major league of bowling and a growing media property that boasts millions of fans around the globe. For more information on Lucky Strike Entertainment, please visit ir.luckystrikeent.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q2 Results.  The company reported Q2 revenue and adj. EBITDA of $300.7 million and $98.8 million, both of which were modestly lower than our estimates of $321.0 million and $104.5 million, respectively. Notably, operating results were impacted by reduced corporate events that were attributed to election outcome concerns, a shortened holiday event window, and New Year’s Eve falling in Q3 this year. Importantly, we anticipate the company will offset the softness in the second half.

Strategic initiatives. With consumers cautious over the macroeconomic environment and some uncertainty around revenue, management is focused on optimizing labor costs, and offering more promotional items to attract value conscious consumers. Furthermore, the company is focused on rebranding locations to Lucky Strike from Bowlero, and pursuing acquisitions in the bowling and broader entertainment space.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

The ODP Corporation (ODP) – Participation in Another New Award

Posted on by cpereira@noblefcm.com


Wednesday, February 05, 2025

Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services. It offers merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture through its chain of office supply stores under the Office Depot, Foray, Ativa, Break Escapes, Worklife, and Christopher Lowell brand names. The company also provides graphic design, printing, reproduction, mailing, shipping, and other services through design, print, and ship centers. It has operations throughout North America, Europe, Asia, and Central America. The company also sells its products and services through direct mail catalogs, contract sales force, Internet sites, and retail stores, through a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 31, 2008, Office Depot operated 1,267 North American retail division office supply stores and 162 international division retail stores, as well as participated under licensing and merchandise arrangements in 98 stores. The company was founded in 1986 and is based in Boca Raton, Florida.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

New Award. Another in a string of new business, ODP Corporation announced its Business Solutions segment is participating in a new award for a multi-year furniture contract with Region 4 Education Service Center (ESC) that brings the potential of up to $500 million in total annual revenue. After a challenging 2024 for Business Solutions, the new year has started positively with the recent contract awards that have the potential to drive top line growth for the segment.

Details. The new contract enables the ODP Business Solutions Workspace Interiors team to offer compliant cooperative purchasing solutions through OMNIA Partners, providing furniture, installation, and related services to K-12 schools, higher education institutions, and cities and counties across the U.S. The new contract grants OMNIA Partners members access to a comprehensive range of products.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – ODP Business Solutions Joins New, Multi-Year, Multi-Award $500M Annual Furniture Partnership with Region 4 Education Service Center

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on ODP

New Contract unlocks potential growth opportunities and provides discounts on quality furniture and furnishing solutions from hundreds of manufacturers through purchasing cooperative

BOCA RATON, Fla.–(BUSINESS WIRE)–Feb. 4, 2025– ODP Business Solutions, a leading supplier of workplace solutions and services and a division of The ODP Corporation (NASDAQ: ODP), announced participation in a new award for a multi-year furniture contract with Region 4 Education Service Center (ESC) that brings the potential of up to $500M in total annual revenue. The contract enables the ODP Business Solutions Workspace Interiors team to offer a compliant cooperative purchasing solution through OMNIA Partners, providing furniture, installation, and related services to K-12 schools, higher education institutions, and cities and counties across the United States.

Region 4 ESC, member of and lead agency for OMNIA Partners, serves as a premier purchasing organization for state and local government, K-12 education, colleges and universities. Region 4 ESC assists school districts in improving student performance, provides efficient fiscal management and builds collaborative relationships and partnerships.

“At ODP Business Solutions we understand that the right learning and working environment can boost productivity and inspire students, educators and administrators,” said David Centrella, executive vice president of The ODP Corporation and president of ODP Business Solutions. “Our Workspace Interiors team is dedicated to delivering innovative and flexible solutions that meet the evolving needs of modern spaces. We look forward to providing these cost-effective products and services through our continued partnership with Region 4 ESC.”

The new contract grants OMNIA Partners members access to a comprehensive range of products designed for diverse environments, including breakrooms, classrooms, administrative offices, libraries, cafeterias, lobbies and more. This competitively solicited, publicly awarded Region 4 cooperative contract ensures compliance with procurement standards, allowing public sector agencies to streamline their purchasing process and save money with discounted offerings.

“Part of our mission is to equip school districts with the services and products they need to operate more efficiently and economically,” said Jorgannie Carter, chief of finance and business services at Region 4 Education Service Center. “Our contract with ODP Business Solutions will allow us to optimize our resources and continue providing schools and professionals with high-quality, affordable products.”

Region 4 serves a seven-county area composed of 48 public school districts and 43 public charter schools, representing more than 1.2 million students and more than 111,000 professional educators.

In recent years, ODP Business Solutions has been awarded five contracts, showing the company’s commitment to supporting public sector organizations with innovative, tailored and cost-effective solutions. To learn more about ODP Business Solutions, visit www.odpbusiness.com.

About ODP Business Solutions:

ODP Business Solutions is a trusted partner with more than 30 years of experience working with businesses to adapt to the ever-changing world of work. From technology transformation, sustainability, innovative workspace design, cleaning and breakroom, and everything in between, ODP Business Solutions has the integrated products and services businesses need. Powered by a collaborative team of experienced business consultants, world-class logistics, and trusted brand names, ODP Business Solutions advances how the working world gets work done. For more information on ODP Business Solutions, visit www.odpbusiness.com.

ODP Business Solutions is a division of The ODP Corporation (NASDAQ: ODP). ODP and ODP Business Solutions are trademarks of ODP Business Solutions, LLC. Any other product or company names mentioned herein are the trademarks of their respective owners.

FORWARD LOOKING STATEMENTS – THE ODP CORPORATION

This communication may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements or disclosures may discuss goals, intentions and expectations as to future trends, plans, events, results of operations, cash flow or financial condition, or state other information relating to, among other things, The ODP Corporation (“the Company”), based on current beliefs and assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “expectations”, “outlook,” “intend,” “may,” “possible,” “potential,” “predict,” “project,” “propose” “aim” or other similar words, phrases or expressions, or other variations of such words. These forward-looking statements are subject to various risks and uncertainties, many of which are outside of the Company’s control. There can be no assurances that the Company will realize these expectations or that these beliefs will prove correct, and therefore investors and stakeholders should not place undue reliance on such statements. Investors and shareholders should carefully consider the foregoing factors and the other risks and uncertainties described in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the U.S. Securities and Exchange Commission. The Company does not assume any obligation to update or revise any forward-looking statements.

Press Contact:
Katee Schalau
6600 North Military Trail
Boca Raton, FL 33496
mediarelations@odpbusiness.com

Source: ODP Business Solutions

1-800-Flowers.com (FLWS) – A Largely Self Inflicted Miss

Posted on by slightbourne@noblecapitalmarkets.com


Friday, January 31, 2025

For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Fiscal Q2 Results. The company reported fiscal Q2 revenue and adj. EBITDA of $775.5 million and $116.3 million, both of which were lower than our estimates of $801.1 million and $124.7 million, respectively. Notably, an order management system (OMS) that was implemented in Q2 for Harry & David faced issues with complicated orders during periods of high volume. The OMS issue, which was resolved in the quarter, resulted in roughly $20 million of lost revenue and is largely to blame for the downside variance.

Strategic initiatives. Importantly, the company remains focused on reducing costs through increased automation, increasing investments in sales and marketing, and broadening its product offerings for its price-sensitive customers. Notably, management highlighted that the savings from its cost reduction efforts will largely fund its increased investment in sales and marketing in an effort to broaden its customer base.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

FAT Brands (FAT) – Distribution of Twin Hospitality Shares Completed

Posted on by cpereira@noblefcm.com


Friday, January 31, 2025

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Distribution. FAT Brands has completed the previously announced distribution of approximately 5.0% of the fully diluted shares of Class A common stock of Twin Hospitality Group Inc. to holders of Class A common stock and Class B common stock of FAT Brands. We believe the distribution of Twin Hospitality will begin to highlight the value of the assets FAT Brands has assembled.

Details. FAT Brands common stockholders received 0.1520207 shares of Twin Hospitality common stock for each share of Class A common stock or Class B common stock of the Company held. In total, FAT Brands distributed 2,659,412 shares of the Twin Hospitality Class A common stock. FAT Brands continues to hold 44,638,859 Class A Twin Hospitality shares and 2,870,000 Class B shares (or 100% of the outstanding B shares).


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.