Stock Monitor: Secoo Holding Post Earnings Reporting

LONDON, UK / ACCESSWIRE / April 9, 2018 / Active-Investors.com has just released a free earnings report on Office Depot, Inc. (NASDAQ: ODP). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ODP. Office Depot reported its fourth quarter and fiscal 2017 operating and financial results on February 23, 2018. The office supplies retailer's sales and earnings declined on a y-o-y basis. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Secoo Holding Limited (NASDAQ: SECO), which also belongs to the Services sector as the Company Office Depot. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Office Depot most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=ODP

Earnings Highlights and Summary

Office Depot's total reported sales were $2.58 billion for Q4 2017 compared to $2.73 billion in Q4 2016, reflecting a drop of 5%. Excluding the impact of retail store closures, foreign currency translation, the CompuCom acquisition, and the additional 53rd week in fiscal 2016, the Company's y-o-y adjusted sales change for the reported quarter, would have been a decline of 4%. Office Depot's reported numbers fell shy of analysts' estimates of $2.61 billion.

Office Depot's sales for the full year 2017 were $10.24 billion, a decline of 7% versus the prior year's comparable sales of $11.02 billion.

In Q4 2017, Office Depot reported operating income of $59 million. In Q4 2016, the Company reported operating income of $57 million, which included the benefit of approximately $15 million from the additional 53rd week. The Company's reported quarter adjusted operating income was $95 million compared to an adjusted operating income of $96 million in the prior year's same quarter.

Office Depot recognized net loss from continuing operations in Q4 2017 of $48 million, or $0.09 per diluted share, resulting from a net tax expense of approximately $68 million associated with changes to the Company's US deferred tax assets and tax valuation allowance due to recent tax law reform. Office Depot's net income from continuing operations in Q4 2016 was $55 million, or $0.10 per diluted share.

Office Depot's adjusted net income from continuing operations was $45 million, or $0.08 per diluted share, in Q4 2017 compared to adjusted net income from continuing operations of $59 million, or $0.11 per diluted share, in Q4 2016. The Company's adjusted results beat Wall Street's estimates of $0.07 per share.

For FY17, Office Depot's reported net income from continuing operations of $181 million, or $0.028 per share, compared to $679 million, or $1.26 per share, in FY16. The Company's adjusted net income from continuing operations was $241 million, or $0.45 per share, in FY17 compared to $251 million, or $0.46 per share, in FY16.

Division Results

During Q4 2017, Office Depot's Retail Division reported sales of $1.16 billion compared to $1.37 billion in Q44 2016. The segment's reported quarter comparable sales declined 4% on a y-o-y basis, primarily driven by fewer transactions and lower average order values.

For Q4 2017, Retail Division operating income was $40 million, or 3.4% of sales, compared to $48 million, or 3.8% of sales, in Q4 2016. The segment's operating income declined primarily due to the negative flow-through impact from lower sales and a lower gross margin rates. During Q4 2017, Office Depot closed 26 stores, ending the year with a total of 1,378 stores in the Retail Division.

During Q4 2017, Office Depot's Business Solutions Division reported sales of $1.26 billion compared to sales of $1.36 billion in Q4 2016, reflecting a decline of 7% on a y-o-y basis. Excluding sales from the additional selling week in Q4 2016, sales in the reported quarter declined 3% in constant currency on a y-o-y basis, primarily driven by lower average sales volume, a shift in the holiday calendar, and the impact of sales from omni-channel programs that are recorded in the Retail Division.

In Q4 2017, Business Solutions Division operating income was $68 million, or 5.4% of sales, compared to $71 million, or 5.5% of sales, in Q4 2016. The slight decline in operating income of $3 million versus the prior year was primarily due to the flow-through impact from lower sales and a lower gross margin rate.

Office Depot had completed the acquisition of CompuCom Systems, Inc. in Q4 2017. The CompuCom Division reported sales of $156 million in the reported quarter, with operating income of $8 million, or 4.8% of sales.

Balance Sheet and Cash Flow

As of December 30, 2017, Office Depot had total available liquidity of approximately $1.5 billion consisting of $0.6 billion in cash and cash equivalents and approximately $0.9 billion available under the Amended and Restated Credit Agreement. The Company's total debt as on December 31, 2017, was $1.0 billion, excluding $776 million of non-recourse debt related to the credit-enhanced timber installment notes.

For FY17, Office Depot's cash provided by operating activities of continuing operations was $467 million. The Company's capital expenditures were $141 million in FY17; accordingly, free cash flow of continuing operations was $326 million during the same period.

For Q4 2017, Office Depot repurchased approximately 6 million shares at a total cost of approximately $22 million.

Stock Performance Snapshot

April 06, 2018 - At Friday's closing bell, Office Depot's stock dropped 2.40%, ending the trading session at $2.03.

Volume traded for the day: 6.15 million shares, which was above the 3-month average volume of 5.31 million shares.

After last Friday's close, Office Depot's market cap was at $1.12 billion.

Price to Earnings (P/E) ratio was at 14.00.

The stock has a dividend yield of 4.93%.

The stock is part of the Services sector, categorized under the Specialty Retail, Other industry.

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