Strategic partnership accelerates ODP Business Solutions’ growth in hospitality sector
BOCA RATON, Fla.–(BUSINESS WIRE)–Aug. 25, 2025– The ODP Corporation (NASDAQ:ODP), a leading provider of products, services and technology solutions to businesses and customers, today announced a hospitality purchasing contract with OMNIA Partners through the ODP Business Solutions division, a reliable supplier of workplace solutions and services. OMNIA Partners is the nation’s largest and most experienced group purchasing organization for the public and private sectors. With this contract, ODP Business Solutions will provide members hospitality-focused products and services, such as high-quality linens, terry cloth towels, bathroom amenities and all other in-room supplies.
“Our growing collaboration with OMNIA Partners is a testament to our ability to support a multi-faceted and expansive customer base across the hospitality industry,” said David Centrella, executive vice president of The ODP Corporation and president of ODP Business Solutions. “Our solutions and services are as diverse as OMNIA Partners’ membership and their needs, making this an ideal partnership that expands our presence in the hospitality sector.”
Products and services supporting the hospitality industry represent a growing $16 billion segment, and OMNIA Partners members are a key part of this sector.
“Adding ODP Business Solutions’ products and solutions is a perfect addition to the OMNIA Partners portfolio,” said Jeff Gillmer, Senior Vice President of Private Sector Sales at OMNIA Partners. “Its high-quality selection of products and solutions and global supply chain will undeniably deliver greater value and savings to the organizations we serve.”
OMNIA Partners is advancing its presence in the hospitality segment by providing members with greater purchasing power, streamlined procurement, and access to high-quality, hospitality-focused products and services. This partnership underscores OMNIA Partners’ commitment to helping hospitality operators reduce costs, improve operational efficiency and elevate the guest experience.
About The ODP Corporation The ODP Corporation (NASDAQ:ODP) is a leading provider of products, services, and technology solutions 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 ODP Business Solutions, LLC; Office Depot, LLC; and Veyer, LLC, The ODP Corporation empowers every business, professional, and consumer to achieve more every day. For more information, visit theodpcorp.com.
About OMNIA Partners As your ally in the purchasing process, OMNIA Partners is dedicated to improving the way your organization identifies, evaluates and procures what they need at the best value. With free membership, you’ll gain immediate access to our portfolio of leading national suppliers as well as OPUS — our ecommerce platform where you can buy online and check product availability. Additionally, access to spend visibility, analytics, and guidance from subject matter experts collaboratively identify more strategic and efficient ways to procure. We are here to help you optimize procurement for your organization. Discover a better way to buy at www.omniapartners.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. To learn more about ODP Business Solutions, visit www.odpbusiness.com.
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.
U.S. home sales showed signs of renewed momentum in July, offering a glimmer of relief for buyers and sellers navigating one of the tightest housing markets in years. According to data from the National Association of Realtors, sales of previously owned homes increased 2% from June to a seasonally adjusted annual rate of 4.01 million units. That figure also marked a 0.8% gain compared with July 2024, defying expectations of a modest decline.
The pickup in activity reflects contracts that were signed earlier in the summer, when mortgage rates began to edge down from their spring highs. The average 30-year fixed mortgage briefly exceeded 7% in May but had retreated to around 6.67% by the end of June. That shift helped unlock demand from buyers who had been sidelined by affordability challenges.
At the same time, supply conditions continued to improve. The number of homes available for sale at the end of July climbed to 1.55 million, up nearly 16% from a year ago. That level represents a 4.6-month supply at the current sales pace, the highest since May 2020 but still short of the six-month threshold considered a balanced market. For prospective buyers, the increase in inventory has translated into more choice and slightly less upward pressure on prices.
Even so, home values remain stubbornly high. The median price of an existing home sold in July reached $422,400, a record for the month and 0.2% higher than a year earlier. That marked the 25th consecutive month of annual price gains, underscoring how persistent demand and limited long-term supply continue to shape the market. Still, with wage growth now outpacing home price appreciation in some regions, economists suggest the market could be approaching an inflection point where affordability begins to improve.
Regional and price-segment dynamics reveal additional shifts. Sales activity has been strongest at the higher end of the market, with transactions on homes priced above $1 million jumping more than 7% from a year ago. In contrast, sales of properties priced below $250,000 remained flat or declined, squeezed by limited availability and still-elevated borrowing costs. In the South, where condominium prices have fallen over the past year, demand for that segment showed particular resilience.
Market behavior also reflects growing participation from investors and cash buyers. Investors accounted for 20% of transactions in July, up sharply from 13% a year earlier, likely taking advantage of the increased supply. Meanwhile, 31% of sales were completed with all cash, compared with 27% last July. That unusually high share suggests that wealth from equities and housing gains is playing a greater role in the market.
Homes are also taking longer to sell. The typical property stayed on the market for 28 days in July, compared with 24 days a year ago. First-time buyers accounted for just 28% of sales, slipping from both June and the same month last year, reflecting the ongoing affordability strain at the entry level of the market.
Overall, July’s data points to a housing sector that is slowly recalibrating. Rising inventory and moderating mortgage rates are offering incremental relief, yet prices remain elevated, and demand is concentrated in higher price tiers. Whether the market has reached a true turning point may depend on the Federal Reserve’s next moves on interest rates and how quickly supply can return to more balanced levels.
U.S. mortgage rates dropped this week to their lowest point in nearly a year, offering a glimmer of relief for homeowners and prospective buyers navigating an expensive housing market. According to Freddie Mac data, the average 30-year fixed mortgage rate slipped to 6.58%, down from 6.63% last week and the lowest reading since October 2024. The 15-year fixed rate also eased slightly, falling to 5.71%.
The decline comes as financial markets grow more confident that the Federal Reserve will cut benchmark interest rates in September. Although mortgage rates aren’t set directly by the Fed, they tend to move in tandem with expectations about the central bank’s future policy decisions.
Weak job growth in recent months and inflation figures that undershot economists’ projections have increased the likelihood of a rate cut. Traders now see a more than 90% probability of the Fed reducing rates by 25 basis points next month. That anticipation has already been factored into mortgage pricing, helping push borrowing costs lower.
Economists caution that borrowers shouldn’t assume today’s levels will continue falling. With much of the expected Fed policy shift already “priced in,” mortgage rates may hover in the current range rather than dropping sharply after the central bank makes its move. Some analysts even suggest volatility could return as new economic data on jobs, wages, and consumer spending is released in the coming weeks.
In other words, the window for buyers to lock in a rate in the mid-6% range may be limited.
For now, the latest decline in borrowing costs has sparked a modest uptick in refinancing activity. Applications to refinance existing mortgages rose 23% in the past week, according to data from the Mortgage Bankers Association. Purchase applications, however, barely moved, rising just 1% as affordability challenges continue to weigh heavily on potential buyers.
Even at 6.58%, mortgage rates remain well above pre-2022 levels, when many borrowers were able to secure loans below 4%. Combined with elevated home prices and limited housing supply, that means affordability remains stretched for first-time buyers in particular.
The direction of mortgage rates through the rest of 2025 will depend largely on how quickly the economy cools and how aggressive the Fed becomes in easing monetary policy. If inflation continues to trend lower and job growth slows further, rates could remain at the lower end of their recent range. However, any surprises in economic data could push borrowing costs higher again.
For now, borrowers considering a purchase or refinance may find this moment to be one of the most favorable opportunities since late last year.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
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Q2 results. SKYX reported Q2 revenue of $23.1 million, up 7.5% year over year and 14.7% sequentially. Gross margin expanded 190bps to 30.3%, supported by a favorable mix shift toward proprietary tech-embedded products. The adj. EBITDA loss of $2.6 million was slightly wider than our forecast of a $2.3 million loss but reflects underlying operating leverage as revenue scales.
Smart City partnership reinforces revenue growth trajectory. The company’s partnership with the $3 billion Smart City development in Miami’s Little River District positions it for sustained long-term growth. We expect the rollout to drive meaningful topline and branding impact over time, with strategic visibility among large-scale developers likely to reinforce future adoption of SKYX’s technology in both residential and commercial verticals.
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A fresh reading on inflation in July has left the Federal Reserve facing a difficult policy choice: act quickly to support a cooling labor market or hold steady to ensure inflation returns to target. Core Consumer Price Index (CPI), which strips out food and energy, rose 3.1% year over year in July — above economists’ 3.0% forecast and up from 2.9% in June. On a monthly basis, core CPI increased 0.3%, matching expectations. Headline CPI rose 2.7% year over year, a touch below the 2.8% consensus.
The mixed picture — a slightly softer headline print but hotter core inflation — complicates the Fed’s September decision. Markets, however, have already swung toward loosening: futures traders are pricing in roughly a 92% chance of a 25-basis-point cut in September. That reflects growing concern about recent labor-market weakness and the potential political impetus for easing.
Employment data released earlier this month deepened that concern. The U.S. added only 73,000 jobs in July, the unemployment rate edged up to 4.2%, and May and June payrolls were revised sharply lower by a combined 258,000. The three-month average for job growth is now about 35,000 — a pace many economists view as consistent with a significant cooling in hiring. Those revisions have amplified calls from some quarters of the Fed to move sooner on rate cuts to cushion the labor market.
At the same time, services inflation, the historically stickier component of the CPI, moved higher in July after moderating earlier in the year. Certain goods categories such as furniture and footwear also showed renewed upward pressure. Because core CPI and core PCE (the Fed’s preferred gauge) tend to move together, the stronger core CPI reading raises the risk that core PCE will also show another above-target reading in coming reports, analysts say.
Policy makers at the Fed remain divided. Several regional presidents and officials have emphasized caution, arguing that elevated inflation — still more than a full percentage point above the Fed’s 2% goal on a core basis — counsels patience. Others have pointed to the softening employment trend as a compelling reason to begin easing policy soon. That split was evident in recent public remarks from Fed officials, who ranged from urging a patient approach to signaling readiness to cut if labor-market deterioration continues.
The White House has also weighed in, increasing political pressure on the Fed to move. That intervention adds another dimension to an already fraught decision, though policymakers stress their commitment to independence and data-driven decisions.
Looking ahead, the Fed will watch August inflation components closely along with incoming employment and consumer spending data. If services inflation continues to run hot, the case for holding rates rises; if job growth further weakens and labor-market indicators soften, arguments for a September cut will strengthen.
For now, the July CPI leaves the Fed between two difficult paths: risk undermining the inflation fight by cutting too soon, or risk further labor-market deterioration by waiting. The choice in September will hinge on the next tranche of inflation and jobs data — and on how policymakers weigh those competing risks.
NEW YORK, Aug. 12, 2025 (GLOBE NEWSWIRE) — Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), today announced that it will report its second quarter 2025 financial results on August 14, 2025. The Company will hold a conference call with the investment community on August 14, 2025, at 9:00 a.m. ET.
Interested parties unable to access the conference call via the webcast may dial 800-715-9871 or 646-307-1963 and use the Conference ID 9043618. A replay of the webcast will be available on Xcel’s website.
About Xcel Brands
Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. Xcel owns the Halston, Judith Ripka, and C. Wonder brands, as well as the co-branded collaboration brands TowerHill by Christie Brinkley, LB70 by Lloyd Boston, Trust. Respect. Love by Cesar Millan, GemmaMade by Gemma Stafford, and a brand in development with Coco Rocha and also holds noncontrolling interests or long-term license agreements in the Isaac Mizrahi brand, Orme Live, and Mesa Mia Live by Jenny Martinez. Xcel also owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing, LLC. Xcel is pioneering a true modern consumer products sales strategy which includes the promotion and sale of products under its brands through interactive television, digital live-stream shopping, social commerce, brick-and-mortar retailers, and e-commerce channels to be everywhere its customers shop. The company’s brands have generated in excess of $5 billion in retail sales via livestreaming in interactive television and digital channels alone, and over 20,000 hours of content production time in live-stream and social commerce. The brand portfolio reaches in excess of 43 million social media followers with broadcast reach into 200 million households. Headquartered in New York City, Xcel Brands is led by an executive team with significant live streaming, production, merchandising, design, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies. For more information, visit www.xcelbrands.com.
NEW YORK, Aug. 11, 2025 (GLOBE NEWSWIRE) — Xcel Brands, Inc. (NASDAQ: XELB), a media and consumer products company known for building influential, creator-led brands, today announced a strategic partnership with TSC Product Lab to launch GemmaMade by Gemma Stafford—a new kitchenware brand created in close collaboration with chef and baking expert Gemma Stafford, designed to bring stylish, functional, and approachable tools to everyday bakers and home cooks.
This collaboration blends Xcel’s omnichannel brand-building capabilities with TSC Product Lab’s innovation-driven product development, delivering a thoughtfully designed assortment of kitchen products that reflect Stafford’s personal passion for joyful, stress-free cooking and baking at home. The product line will include bakeware, kitchen tools, food storage solutions, mixing bowls, and more—each created to support everyday needs with ease, charm, and reliability.
“GemmaMade is a celebration of the home kitchen,” said Robert W. D’Loren, Chairman and CEO of Xcel Brands. “We’re thrilled to partner with Gemma and TSC Product Lab to bring her vision to life through products that are as inviting and dependable as the content she shares with her loyal audience.”
With millions of fans and years of experience as a professionally trained chef, Gemma Stafford has built one of the most trusted and beloved baking communities in the world through her digital brand Bigger Bolder Baking. As both the creator and namesake behind GemmaMade, Gemma has worked hands-on with Xcel and TSC to develop a line that reflects her bold baking philosophy, her Irish heritage, and her belief that anyone can create delicious food with the right tools and a little confidence
“At the heart of GemmaMade is a simple promise: to super-serve home bakers and cooks with tools they can trust and love,” said Gemma Stafford. “I created this line for the everyday bakers and cooks who show up for birthdays, holidays, after-school snacks, and Sunday mornings—because they deserve products that are as joyful and reliable as they are. With Xcel and TSC, I’m excited to share the warmth of Irish hospitality through every bowl, pan, and spatula. In my kitchen, everyone’s welcome—because in a way, everyone is Irish.”
Rick Lapine, President of TSC Product Lab, added: “We are proud to be working with Gemma and Xcel to launch a brand that blends tradition and GemmaMade by Gemma Stafford reinforces Xcel Brands’ ongoing mission to build creator-led businesses that resonate with modern consumers and support how people live, cook, and share today.”
About Xcel Brands Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. Xcel owns the Halston, Judith Ripka, and C. Wonder brands, as well as the co-branded collaboration brands TowerHill by Christie Brinkley, LB70 by Lloyd Boston, Trust. Respect. Love by Cesar Millan, GemmaMade by Gemma Stafford, and a brand in development with Coco Rocha and also holds noncontrolling interests or long-term license agreements in the Isaac Mizrahi brand, Orme Live and Mesa Mia by Jenny Martinez brands. Xcel also owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing, LLC. Xcel is pioneering a true modern consumer products sales strategy which includes the promotion and sale of products under its brands through interactive television, digital live-stream shopping, social commerce, brick-and-mortar retailers, and e-commerce channels to be everywhere its customers shop. The company’s brands have generated in excess of $5 billion in retail sales via livestreaming in interactive television and digital channels alone and consisting of over 20,000 hours of content production time in live-stream and social commerce. The brand portfolio reaches in excess of 43 million social media followers with broadcast reach into 200 million households. Headquartered in New York City, Xcel Brands is led by an executive team with significant live streaming, production, merchandising, design, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies. For more information, visit www.xcelbrands.com.
About TSC Lab Products The Sneaky Chef Product Lab (“TSC”) is a cost-effective product development and sourcing company specializing in innovative solutions for the home. The Company’s mission is to create products and brands for leading retailers. Since 2007, TSC has built a diverse portfolio of owned, private label and exclusively licensed brands and has partnered with such legacy names such as Martha Stewart, Sodastream, GreenPan and Calvin Klein. Its network of retail partners includes HSN, QVC, Walmart, Amazon and TJX Companies among others.
Led by Rick Lapine, an industry veteran with decades of experience, TSC is supported by a full-time team of passionate experts, bringing over 30 years of combined expertise in sourcing and production. This team has helped establish TSC as a trusted partner for efficient product development, manufacturing, and logistics, with the capability to execute projects rapidly and reliably.
About Gemma Stafford
For more than a decade, Irish-born chef Gemma Stafford has been bringing her passion for teaching people how to bake with confidence to her top online baking show and brand, Bigger Bolder Baking. Today, with more than 8 million followers (“Bold Bakers”) and half a billion video views to date, Bigger Bolder Baking has become the leading – and indispensable – multimedia destination for bakers. Gemma’s unique combination of expertise, bold recipes, and approachable techniques have led to appearances as a judge on Netflix’s Nailed It!, Food Network’s Best Baker in America, and Hulu’s Baker’s Dozen, along with appearances on national and local TV nationwide. Gemma is also the co-creator and host of the #1 baking entertainment podcast, Knead To Know, which releases every week in partnership with HRN. In 2025, she will launch the first-ever baking TV network, the Bold Baking Network, on connected television (CTV) and free ad-supported streaming television (FAST) platforms dedicated to educating and entertaining home bakers 24/7.
JERICHO, N.Y.–(BUSINESS WIRE)– 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) (the “Company”),a leading provider of thoughtful expressions designed to help inspire customers to give more, connect more, and build more and better relationships, today announced that the Company will release financial results for its fiscal 2025 fourth quarter and year end on Thursday, September 4, 2025. The press release will be issued before the market opens and will be followed by a conference call with members of senior management at 8:00 a.m. (ET).
The conference call will be available via live webcast from the Investors section of the Company’s website at www.1800flowersinc.com/investors. A replay of the webcast will be available shortly after the live event has concluded. A telephonic replay of the call can be accessed beginning at 2:00 p.m. (ET) on September 4, 2025, through September 11, 2025, by dialing (877) 344-7529 or (412) 317-0088 for international callers; the passcode is 9381429.
Special Note Regarding Forward-Looking Statements:
Some of the statements contained in the Company’s scheduled Thursday, September 4, 2025, press release and conference call regarding its results for its fiscal 2025 fourth quarter and year end, other than statements of historical fact, may be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. For a more detailed description of these and other risk factors, please refer to the Company’s SEC filings including its Annual Reports and Forms 10K and 10Q available at the Investor Relations section of the Company’s website at 1800flowersinc.com. The Company expressly disclaims any intent or obligation to update any of the forward-looking statements made in the scheduled conference call and any recordings thereof, or in any of its SEC filings, except as may be otherwise stated by the Company.
About 1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. is a leading provider of thoughtful expressions designed to help inspire customers to give more, connect more, and build more and better relationships. The Company’s e-commerce business platform features an all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Simply Chocolate® and Scharffen Berger®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge on eligible products across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad-range of products and services designed to help members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; Alice’s Table®, a lifestyle business offering fully digital livestreaming and on demand floral, culinary and other experiences to guests across the country; and Card Isle®, an e-commerce greeting card service. 1-800-FLOWERS.COM, Inc. was recognized among America’s Most Trustworthy Companies by Newsweek. 1-800-FLOWERS.COM, Inc. was also recognized as one of America’s Most Admired Workplaces for 2025 by Newsweek and was named to the Fortune 1000 list in 2022. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com.
Key Points: – Administration aims to take mortgage giants public by year-end, potentially valuing them at $500B+. – Fannie and Freddie have been under federal conservatorship since the 2008 financial crisis. – Privatization could reshape the $12T U.S. housing finance system.
President Donald Trump’s administration is pushing ahead with plans to take mortgage finance giants Fannie Mae and Freddie Mac public before the end of 2025, a move that could mark one of the largest and most closely watched privatizations in U.S. history.
According to people familiar with the matter, discussions are underway that could value the two government-sponsored enterprises (GSEs) at a combined $500 billion or more. The share sales could raise roughly $30 billion, injecting fresh capital into companies that have been under federal control since the 2008 financial crisis.
Fannie Mae and Freddie Mac play a central role in the U.S. housing market, buying mortgages from lenders, packaging them into mortgage-backed securities (MBS), and guaranteeing timely payment of principal and interest to investors. By recycling capital back to banks and mortgage companies, they help ensure a steady flow of financing for homebuyers, multifamily developers, and real estate investors.
Both companies were placed into conservatorship in September 2008 after the housing market collapse left them on the brink of insolvency. The U.S. Treasury provided a combined $191 billion in support, receiving preferred shares in return. Over the years, the companies have paid the government more than that amount in dividends, but attempts to return them to private ownership have repeatedly stalled amid political divisions and the complexity of reforming the $12 trillion mortgage market they underpin.
Trump has long signaled his desire to end federal conservatorship of the mortgage giants, including during his first term. His return to the White House has revived optimism among investors who have held shares in the companies for years in anticipation of privatization. Billionaire hedge fund manager Bill Ackman, a prominent shareholder, has said he expects Trump to complete the process.
Still, the road to IPOs is unlikely to be straightforward. Fannie and Freddie guarantee or own about half of all U.S. home loans, meaning any shift in ownership must be carefully managed to avoid disrupting housing finance. The administration is expected to keep some form of oversight in place even after the companies are privatized, with Trump previously saying in May that he intends to retain a role for federal supervision.
Market reaction to the Wall Street Journal report on the IPO plan was swift. Shares of both companies, which trade over the counter, surged more than 21%, hitting their highest levels in over a month.
In recent days, Trump has met with the CEOs of major banks including Citigroup and Bank of America to discuss the potential privatization, according to earlier Reuters reporting. Financial institutions are expected to play a critical role in structuring the offerings and preparing the companies for life after conservatorship.
If successful, the IPOs of Fannie Mae and Freddie Mac would represent a historic shift in the U.S. housing finance system—one that could reshape the secondary mortgage market, alter investor participation in MBS, and redefine the federal government’s role in backstopping the nation’s home loan market.
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.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
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Q2 Overview. During the quarter, ODP saw improved revenue trends and delivered solid operating results, highlighted by stronger adjusted free cash flow generation. The results reflect ongoing improvements across both the consumer and B2B businesses. Retail meaningfully improved same-store sales trends versus last year, while the B2B business achieved approximately a 200-basis point improvement in year-over-year revenue trends.
Q2 Results. The ODP Corporation reported revenue of $1.59 billion in 2Q25, down from $1.72 billion in 2Q24. We had estimated $1.58 billion. Adjusted EBITDA was $47 million, down from $57 million a year ago and in-line with our $44 million estimate. Adjusted EPS came in at $0.51 compared to $0.56 in 2Q24 and our $0.23 estimate.
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In a transformative move that will reshape the North American cabinet manufacturing landscape, MasterBrand Inc. and American Woodmark Corporation announced today a definitive all-stock merger agreement that creates a combined entity with a pro forma equity value of $2.4 billion and enterprise value of $3.6 billion.
Under the agreement, American Woodmark shareholders will receive 5.150 shares of MasterBrand common stock for each American Woodmark share they own. Upon completion, MasterBrand shareholders will control approximately 63% of the combined company, while American Woodmark shareholders will hold the remaining 37% on a fully diluted basis.
The transaction is expected to close in early 2026, pending shareholder approvals from both companies, regulatory clearances, and other customary closing conditions. Notably, the deal is structured as an all-stock transaction, though MasterBrand plans to arrange additional credit facilities to retire American Woodmark’s existing debt at closing.
The merger creates what the companies describe as “the cabinet industry’s most comprehensive portfolio of trusted brands and products.” The combination leverages complementary strengths: MasterBrand’s broad brand portfolio and American Woodmark’s streamlined manufacturing profile and strong customer relationships.
Financial projections are compelling. The combined entity expects to generate approximately $639 million in trailing 12-month adjusted EBITDA, including anticipated run-rate cost synergies of $90 million by the end of year three. These synergies will primarily come from procurement optimization, manufacturing network improvements, and administrative cost reductions. The deal is expected to be accretive to MasterBrand’s adjusted diluted earnings per share by year two.
The merger positions the combined company to better serve diverse customer segments across multiple channels. With MasterBrand’s existing network of over 7,700 dealers, major retailers, and builders, plus American Woodmark’s relationships with home centers and independent distributors, the enlarged entity will have unprecedented market reach.
Geographic expansion is another key benefit. The complementary footprints of both companies will provide access to high-growth markets while offering customers greater flexibility in purchasing options and enhanced support capabilities.
Dave Banyard, currently MasterBrand’s President and CEO, will lead the combined company, while David Petratis will serve as Board Chair. The integration will be overseen by Nathaniel Leonard, MasterBrand’s Executive Vice President of Corporate Strategy and Development. The combined entity will maintain its MasterBrand name and be headquartered in Beachwood, Ohio, while preserving a significant operational presence in Winchester, Virginia.
Importantly, American Woodmark’s board will contribute three directors to the expanded MasterBrand board, ensuring representation in governance decisions.
The merger creates a financially stronger entity with an anticipated net debt-to-adjusted EBITDA ratio below MasterBrand’s 2.0x target leverage at closing. This improved financial profile is expected to enhance free cash flow generation, provide greater resilience through market cycles, and enable increased investment in growth initiatives, automation, and technology.
Both companies emphasize their commitment to maintaining and growing their respective legacy brands, which have established trust with channel partners and consumers. The combination represents a strategic bet on the continued growth of the North American residential cabinet market and the companies’ ability to capture greater market share through expanded capabilities and improved operational efficiency.
This merger signals consolidation in the cabinet manufacturing industry as companies seek scale advantages and broader market reach to compete more effectively in an evolving marketplace.
Second Quarter Revenue of $1.6 Billion with GAAP EPS of $0; Adjusted EPS of $0.51
GAAP Operating Income of $9 Million; Net Income of $0; Operating Cash Flow of $16 Million
Adjusted EBITDA of $47 Million; Adjusted Free Cash Flow of $13 Million
B2B Distribution and Consumer Divisions Drove Improved Performance Trends
Progress on Long-Term Growth Initiatives
Provides Additional Guidance for 2025
BOCA RATON, Fla.–(BUSINESS WIRE)–Aug. 6, 2025– The ODP Corporation (“ODP,” or the “Company”) (NASDAQ:ODP), a leading provider of products, services, and technology solutions to businesses and consumers, today announced results for the second quarter ended June 28, 2025.
Consolidated (in millions, except per share amounts)
2Q25
2Q24
YTD25
YTD24
Selected GAAP and Non-GAAP measures:
Sales
$1,586
$1,717
$3,286
$3,586
Sales change from prior year period
(8)%
(8)%
Operating income (loss)
$9
$0.4
$(23)
$41
Adjusted operating income (1)
$25
$33
$79
$100
Net income (loss) from continuing operations
$—
$(4)
$(29)
$27
Diluted earnings (loss) per share from continuing operations
$—
$(0.12)
$(0.97)
$0.73
Adjusted net income from continuing operations (1)
$15
$20
$47
$70
Adjusted earnings per share from continuing operations (fully diluted) (1)
$0.51
$0.56
$1.57
$1.89
Adjusted EBITDA (1)
$47
$57
$123
$147
Operating Cash Flow from continuing operations
$16
$(1)
$73
$43
Free Cash Flow (2)
$4
$(20)
$39
$(7)
Adjusted Free Cash Flow (3)
$13
$5
$58
$22
Second Quarter 2025 Summary(1)(3)
Total reported sales of $1.6 billion, down 8% versus the prior year period on a reported basis. The decrease in reported sales is largely related to lower sales in its Office Depot Division, primarily due to 60 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, despite improving year-over-year comparable revenue trends
GAAP operating income of $9 million versus $400 thousand in the prior year period. Net income from continuing operations and net diluted earnings per share was break even in the second quarter of 2025 compared to net loss from continuing operations of $4 million, or $(0.12) per diluted share, in the prior year period. GAAP operating results in the second quarter of 2025 included $16 million of charges of which $12 million is related to the Company’s Optimize for Growth restructuring plan
Adjusted operating income of $25 million, compared to $33 million in the second quarter of 2024; adjusted EBITDA of $47 million, compared to $57 million in the second quarter of 2024
Adjusted net income from continuing operations of $15 million, or adjusted diluted earnings per share from continuing operations of $0.51, versus $20 million or $0.56, respectively, in the prior year period
Operating cash flow from continuing operations of $16 million and adjusted free cash flow of $13 million, versus $(1) million and $5 million, respectively, in the prior year period
$658 million of total available liquidity including $177 million in cash and cash equivalents at quarter end
“Our team’s disciplined execution and focus on operational excellence resulted in another quarter of improved performance,” said Gerry Smith, Chief Executive Officer of The ODP Corporation. “During the quarter, we drove improved revenue trends and delivered solid operating results, highlighted by stronger adjusted free cash flow generation. These results reflect ongoing improvements across both our consumer and B2B businesses.”
“In our consumer segment, we meaningfully improved same-store sales trends versus last year, underscoring the effectiveness of our targeted sales strategies and strong value proposition. Meanwhile, in our B2B distribution business, we achieved approximately a 200-basis point improvement in year-over-year revenue trends, driven by stronger sales traction with new customers and early contributions from our expansion into the hospitality sector. Sales trends improved month over month throughout the quarter, improving our position as we head into the second half of the year.”
“On a consolidated basis, our strong performance resulted in solid adjusted EBITDA and drove adjusted free cash flow more than double last year’s level, further strengthening our balance sheet.”
“As we look to the second half of the year, we remain confident in our ability to drive continued improvement and value creation. We expect continued strength in performance in our consumer segment while driving improved revenue trends in our B2B distribution business, as we continue to onboard new customers and begin to penetrate the hospitality segment. Additionally, with our strong focus on cash, we expect to generate significantly higher adjusted free cash flow versus last year, further strengthening our foundation and balance sheet. We remain committed to executing our core strategy and delivering long-term shareholder value,” Smith added.
Consolidated Results
Reported (GAAP) Results Total reported sales for the second quarter of 2025 were $1.6 billion, an 8% decrease compared to the same period last year, primarily reflecting lower sales in both the consumer and business-to-business (B2B) divisions. The decline in the consumer division, Office Depot, was mainly driven by 60 fewer stores in operation due to planned closures, as well as reduced retail and online consumer traffic. On a comparable store basis, sales declined 5%, representing a meaningful improvement over the 7% decrease in the prior year period. In the ODP Business Solutions Division, sales declined 6% year-over-year, primarily reflecting ongoing macroeconomic headwinds and softer enterprise spending. However, sales trends improved by approximately 200 basis points both sequentially and year-over-year, indicating positive momentum in the business. Veyer continued to deliver strong logistical support for both the ODP Business Solutions and Office Depot divisions despite lower internal sales volume, while also advancing its growth strategy by providing supply chain and procurement solutions to third-party customers and driving increases in external revenue.
The Company reported GAAP operating income of $9 million in the second quarter of 2025, up compared to $400 thousand in the prior year period. Operating results in the second quarter of 2025 included $16 million of charges primarily related to $13 million in restructuring expenses largely associated with the Optimize for Growth restructuring plan, $2 million in non-cash asset impairments of operating lease right-of-use (“ROU”) assets associated with the Company’s retail store locations, and $1 million related to the impairment of operating lease ROU assets associated with the Company’s supply chain facilities. Net income from continuing operations and net diluted earnings per share were break even in the second quarter of 2025, up compared to net loss from continuing operations of $4 million, or $(0.12) per diluted share in the second quarter of 2024.
Adjusted (non-GAAP) Results(1) Adjusted results for the second quarter of 2025 exclude charges and credits totaling $16 million as described above and the associated tax impacts.
Second quarter 2025 adjusted EBITDA was $47 million compared to $57 million in the prior year period. This included adjusted depreciation and amortization of $24 million in both the second quarter of 2025 and 2024
Second quarter 2025 adjusted operating income was $25 million, down compared to $33 million in the second quarter of 2024
Second quarter 2025 adjusted net income from continuing operations was $15 million, or $0.51 per diluted share, compared to $20 million, or $0.56 per diluted share, in the second quarter of 2024, a decrease of 9% on a per share basis
Division Results
ODP Business Solutions Division Leading B2B distribution solutions provider serving small, medium and enterprise level companies with an annual trailing-twelve-month revenue of $3.5 billion.
Reported sales for the second quarter of 2025 were $859 million, a decrease of 6% year-over-year. This result reflects an improvement in revenue trends, despite ongoing macroeconomic challenges and continued softness in enterprise demand. Sequential and year-over-year revenue trends improved by about 200 basis points, driven by ODP Business Solutions’ success in onboarding new customers, executing targeted sales initiatives, and generating incremental growth in hospitality categories
Total adjacency category sales, including cleaning and breakroom, furniture, technology, and copy and print, were 45% of total ODP Business Solutions’ sales, representing an increase over the same period last year
Delivered significant progress on long-term growth initiatives, accelerating expansion into new market sectors. Achieved substantial sales growth in Operating, Supplies & Equipment (OS&E) categories within the hospitality business and expanded presence in new markets helping drive increased demand for traditional product categories. Onboarded approximately one thousand new hotel properties as customers through the Company’s existing hospitality agreement. Made meaningful progress on potential new agreements with several leading hospitality management companies
Successfully attracted new enterprise customers and continuing to build upon large pipeline for future growth, both in traditional and new industry sectors
Operating income was $18 million in the second quarter of 2025, down compared to $29 million in the same period last year on a reported basis. EBITDA was $24 million, or 3% on a percentage of sales basis
Office Depot Division Leading provider of retail consumer and small business products and services distributed via Office Depot and OfficeMax retail locations and eCommerce presence.
Reported sales were $716 million in the second quarter of 2025, down 10% year-over-year, reflecting an improvement over prior year trends. Sales were impacted by 60 fewer retail locations due to planned store closures, lower demand in certain product categories, and reduced online sales. Comparable store sales declined 5%, a meaningful improvement versus the 7% decrease in the prior year period, as targeted, profitable sales strategies gained traction. The Company closed 23 retail stores during the quarter, ending with 834 retail locations
Store and online traffic were lower year-over-year due to macroeconomic factors. However, targeted sales promotions resulted in higher average order volumes and sales per shopper, strengthening top-line results and margins
Operating income was $12 million in the second quarter of 2025, compared to $17 million during the same period last year on a reported basis, driven primarily by the flow through impact from fewer stores in service and lower sales volume. As a percentage of sales, operating income was 2%, flat with the same period last year
Veyer Division Nationwide supply chain, distribution, procurement and global sourcing operation supporting Office Depot and ODP Business Solutions, as well as third-party customers. Veyer’s assets and capabilities include 8 million square feet of infrastructure through a network of distribution centers, cross-docks, and other facilities throughout the United States; a global sourcing presence in Asia; a large private fleet of vehicles; and business next-day delivery capabilities to 98.5% of U.S. population.
In the second quarter of 2025, Veyer provided support for its internal customers, ODP Business Solutions and Office Depot, as well as its third-party customers, generating reported sales of $1.1 billion
Reported operating income was $10 million in the second quarter of 2025, compared to $5 million in the prior year period
Growing new customer prospects resulting in expanded new business pipeline potential
In the second quarter of 2025, sales generated from third-party customers increased by 90% compared to the same period last year, resulting in sales of $19 million. EBITDA generated from third-party customers was $5 million in the quarter, an increase of 32% compared with the prior year period
Balance Sheet and Cash Flow
As of June 28, 2025, ODP had total available liquidity of $658 million, consisting of $177 million in cash and cash equivalents and $481 million of available credit under the Fourth Amended Credit Agreement. Total debt was $245 million.
For the second quarter of 2025, cash provided by operating activities of continuing operations increased to $16 million, which included $9 million in restructuring spend, compared to cash used by operating activities of continuing operations of $1 million in the second quarter of the prior year, which included $25 million in restructuring spend. The year-over-year increase in operating cash flow is primarily related to operational discipline including strong cash conversion, as well as prudent working capital management helping to offset the impact of lower sales.
Capital expenditures were $12 million in the second quarter of 2025 versus $19 million in the prior year period, as the Company continued to prioritize capital investments towards B2B growth opportunities supporting its supply chain operations, distribution network, and digital capabilities. Adjusted Free Cash Flow(3) was $13 million in the second quarter of 2025, up compared to $5 million in the prior year period.
“Our team’s focus on operational discipline and cash conversion helped us generate $13 million in adjusted free cash flow for the quarter—a 160% increase over last year,” said Adam Haggard, co-CFO of The ODP Corporation. “The changes we are making to our business model have resulted in stronger cash generation year-to-date and have helped us pay down approximately $35 million in debt so far this year, further strengthening our balance sheet. We remain committed to disciplined capital allocation in our core business, while pursuing higher growth opportunities in our traditional segments and in attractive new industries like hospitality. We are also sharpening our focus on inventory management opportunities which we expect will enhance future cash generation. We believe this strategy positions ODP to maximize cash flow and provides a pathway for long term sustainable growth and value creation.”
Hospitality Industry Progress
As previously announced, ODP Business Solutions has formed a strategic partnership with one of the world’s largest hotel management organizations, becoming a preferred provider for OS&E. This agreement positions ODP as a reliable distribution partner, supporting the recurring in-room hotel supply needs of its over 15,000 members. This partnership underscores ODP’s evolution beyond office supplies and highlights its ability to deliver tailored solutions to businesses in the hospitality, healthcare, and adjacent sectors.
The Company continues to make solid progress in expanding its presence within the hospitality sector, leveraging strategic relationships with leading suppliers, including Sobel Westex and Hunter Amenities, broadening access to a diverse range of premium products and elevating service for hospitality clients. During the quarter, ODP Business Solutions added key leadership and sales talent with significant prior hospitality experience and success. Additionally, the Company onboarded approximately one thousand new properties under its current agreement, which will help drive longer term growth. In the initial phase of its launch, the Company is seeing solid early demand for its OS&E product offering, resulting in robust month-over-month growth in hospitality categories in the quarter. Furthermore, the expanded product assortment is driving increased sales of traditional office products among hospitality customers.
The Company is also actively engaged in discussions with several additional major hospitality organizations to become a primary supplier of OS&E products for both company-owned and franchised locations.
“We are very encouraged by the early momentum we are seeing as we enter the hospitality market segment,” said Gerry Smith. “Our progress demonstrates strong demand for our hospitality solutions and the high-touch, reliable service that supports them. Furthermore, this expanded offering is driving increased interest in our traditional office products among hospitality customers. We are rapidly onboarding new customers in this segment and are actively pursuing opportunities to further expand our reach in the sector, making progress on discussions with several additional leading hospitality management companies. We believe the progress we are making will be reflected in our future results and will further strengthen our foundation for long-term, profitable growth.”
“Optimize for Growth” B2B Revenue Acceleration Plan
In the second quarter of 2025, the Company advanced its “Optimize for Growth” restructuring plan, an initiative aimed at reducing fixed-cost infrastructure while leveraging core strengths to accelerate growth in B2B market segments. This includes expansion into new enterprise verticals such as hospitality, healthcare, and other adjacent sectors.
In connection with this plan in the second quarter of 2025, the Company recognized $12 million of restructuring expense primarily related to severance costs and the closure of 23 retail stores, three distribution facilities, and one satellite location. In total, over the multi-year life of the plan, the Company expects to incur costs in the range of $185 million to $230 million, which we anticipate will generate approximately $380 million in EBITDA improvement and generate over $1.3 billion in total value.
Commentary Regarding 2025 Outlook
For the second half of the year, the Company expects to deliver continued improvement in performance, driven by:
Top-line trend improvement at ODP Business Solutions in the second half of 2025, driven by improved performance in traditional product categories and expansion into hospitality
Continued robust results in the consumer business, Office Depot, supporting strong cash generation throughout the second half of the year
Generation of over $115 million in adjusted free cash flow for the full year 2025, as the Company executes its strategy and sharpens its focus on working capital management
Estimated Adjusted Free Cash Flow for the full year 2025 is a non-GAAP measure. This measure excludes charges not indicative of core operations, such as cash charges associated with its Optimize for Growth plan and other significant items that currently cannot be predicted without unreasonable efforts. The exact amount of these charges are not currently determinable but may be significant. Accordingly, the Company is unable to provide an equivalent GAAP measure or reconciliations from GAAP to non-GAAP for Adjusted Free Cash Flow for the full year 2025.
“We are encouraged by our improved performance and progress in the first half of the year and we remain optimistic about driving further improvements to areas of our business in the second half,” added Smith. “Our outlook considers stable macroeconomic and business conditions. Additionally, while we are not immune from changes in the evolving tariff landscape, we believe that we are well positioned to adjust as necessary to limit potential impacts to our business.”
“We remain committed to executing our core strategy and capitalizing on the many opportunities ahead. By leveraging our strong asset base, we are driving growth in our core B2B business and expanding into higher-growth industries such as hospitality. At the same time, we are maximizing value and cash generation in our consumer business and reducing our fixed cost infrastructure, which we expect will positively impact margins in future years. Overall, we are strengthening our foundation and improving our positioning to drive future profitable growth and cash flow generation,” Smith added.
The ODP Corporation will webcast a call with financial analysts and investors on August 6, 2025, 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.
(1)
As presented throughout this release, adjusted results represent non-GAAP financial measures and exclude charges or credits not indicative of core operations and the tax effect of these items, which may include but not be limited to merger integration, restructuring, acquisition costs, and asset impairments. Reconciliations from GAAP to non-GAAP financial measures can be found in this release as well as on the Company’s Investor Relations website at investor.theodpcorp.com.
(2)
As used in this release, Free Cash Flow is defined as cash flows from operating activities less capital expenditures and changes in restricted cash. Free Cash Flow is a non-GAAP financial measure and reconciliations from GAAP financial measures can be found in this release as well as on the Company’s Investor Relations website at investor.theodpcorp.com.
(3)
As used in this release, Adjusted Free Cash Flow is defined as Free Cash Flow excluding cash charges associated with the Company’s restructuring programs, and related expenses. Adjusted Free Cash Flow is a non-GAAP financial measure and reconciliations from GAAP financial measures can be found in this release as well as on the Company’s Investor Relations website at investor.theodpcorp.com.
About The ODP Corporation
The ODP Corporation (NASDAQ:ODP) is a leading provider of products, services and technology solutions through an integrated business-to-business (B2B) distribution platform and omni-channel presence, which includes supply chain and distribution operations, dedicated sales professionals, online presence, and a network of Office Depot and OfficeMax retail stores. Through its operating companies ODP Business Solutions, LLC; Office Depot, LLC; and Veyer, LLC, The ODP Corporation empowers every business, professional, and consumer to achieve more every day. For more information, visit theodpcorp.com.
FORWARD LOOKING STATEMENTS 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 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” 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. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, highly competitive office products market and failure to differentiate the Company from other office supply resellers or respond to decline in general office supplies sales or to shifting consumer demands; competitive pressures on the Company’s sales and pricing; the risk that the Company is unable to transform the business into a service-driven, B2B platform or that such a strategy will not result in the benefits anticipated; the risk that the Company will not be able to achieve the expected benefits of its strategic plans, including charges and benefits related to Optimize for Growth, Project Core and other strategic restructurings or initiatives; the risk that the Company may not be able to realize the anticipated benefits of acquisitions due to unforeseen liabilities, future capital expenditures, expenses, indebtedness and the unanticipated loss of key customers or the inability to achieve expected revenues, synergies, cost savings or financial performance; failure to effectively manage the Company’s real estate portfolio; loss of business with government entities, purchasing consortiums, and sole- or limited- source distribution arrangements; failure to attract and retain qualified personnel, including employees in stores, service centers, distribution centers, field and corporate offices and executive management, and the inability to keep supply of skills and resources in balance with customer demand; failure to execute effective advertising efforts and maintain the Company’s reputation and brand at a high level; disruptions in computer systems, including delivery of technology services; breach of information technology systems affecting reputation, business partner and customer relationships and operations and resulting in high costs and lost revenue; unanticipated downturns in business relationships with customers or terms with the suppliers, third-party vendors and business partners; disruption of global sourcing activities, evolving foreign trade policy (including tariffs imposed on certain foreign made goods); exclusive Office Depot branded products are subject to additional product, supply chain and legal risks; product safety and quality concerns of manufacturers’ branded products and services and Office Depot private branded products; covenants in the credit facility; general disruption in the credit markets; incurrence of significant impairment charges; retained responsibility for liabilities of acquired companies; fluctuation in quarterly operating results due to seasonality of the Company’s business; changes in tax laws in jurisdictions where the Company operates; increases in wage and benefit costs and changes in labor regulations; changes in the regulatory environment, legal compliance risks and violations of the U.S. Foreign Corrupt Practices Act and other worldwide anti-bribery laws; volatility in the Company’s common stock price; changes in or the elimination of the payment of cash dividends on Company common stock; macroeconomic conditions such as higher interest rates and future declines in business or consumer spending; increases in fuel and other commodity prices and the cost of material, energy and other production costs, or unexpected costs that cannot be recouped in product pricing; unexpected claims, charges, litigation, dispute resolutions or settlement expenses; catastrophic events, including the impact of weather events on the Company’s business; the discouragement of lawsuits by shareholders against the Company and its directors and officers as a result of the exclusive forum selection of the Court of Chancery, the federal district court for the District of Delaware or other Delaware state courts by the Company as the sole and exclusive forum for such lawsuits; and the impact of the COVID-19 pandemic on the Company’s business. The foregoing list of factors is not exhaustive. 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.
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.
Solid Q2 results. The company reported solid revenue and adj. EBITDA of $144.0 million and $7.4 million, respectively, both of which were better than our estimates of $131.8 million and $6.1 million, respectively. Notably, the strong operating results were largely driven by a 14% increase in Branded Products sales over the prior year period.
Mitigating tariff impact. Notably, management highlighted that its Branded Products segment is well-positioned to navigate the current tariff environment. Importantly, the company started diversifying manufacturing away from China during the first Trump administration and now sources the majority of its Branded Products outside of China. Furthermore, the company’s Healthcare Apparel segment produces all of its finished products outside of China.
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*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.
