OfficeMax Reports Lower Sales, Loss

By TWICE Staff -- TWICE, 8/2/2011

Naperville, Ill. - OfficeMax reported lower sales and a net loss in its fiscal second quarter, ended June 25.

Total sales were $1.65 billion in the second quarter of 2011, a decrease of 0.3 percent from the second quarter of 2010. The chain reported a net loss available to OfficeMax common shareholders of $3 million, compared with a net income of $12.4 million in the prior year's fiscal second quarter.

Ravi Saligram, president/CEO OfficeMax, said, "We continued to experience top-line softness as a result of the difficult macroeconomic environment but have made progress on gross margin initiatives. We remain focused on executing the fundamentals better, enhancing the management team and improving the operations of the business."

Retail segment sales decreased 0.7 percent to $767.3 million in the second quarter of 2011 compared with the second quarter of 2010, reflecting a same-store sales decrease of 0.5 percent. A decline in same-store sales in the U.S. was partially offset by stronger same-store sales in Mexico.

Retail segment income was $8 million, or 1 percent of sales, in the second quarter of 2011, compared with $13.9 million, or 1.8 percent of sales, in the second quarter of 2010.

OfficeMax ended the second quarter of 2011 with a total of 983 retail stores -- 904 stores in the U.S. and 79 stores in Mexico. During the second quarter of 2011, OfficeMax closed eight U.S. stores.