OfficeMax Fiscal Q4 Sales Rise 5%, Moves Into Black

Cleveland— Fueled by increased same-store sales, OfficeMax reported a 5 percent overall fiscal fourth-quarter sales increase, hitting $1.34 billion, up from $1.27 billion in the year-ago period. U.S. comp-store sales climbed 8.5 percent in the fourth quarter.

The office product retailer also moved into the black during the fourth quarter, ended Jan. 25, with the company announcing an increase in the number of customers and average sales tickets.

OfficeMax's reported net income of $27.1 million for the period, compared with a net loss of $243.1 million in the same quarter a year earlier, including charges of $77 million for store closings and a non-cash charge of $171 million. Gross margin in the fourth quarter climbed 370 basis points, to 24.9 percent.

Pro forma, the company recorded an earned net of $16.4 million in the fourth quarter, compared with a pro forma loss of $22.2 million year over year.

OfficeMax chairman/CEO Michael Feuer attributed the company's substantial quarterly gains to development and installation of state-of-the-art supply chain management and computer systems, store execution programs, more effective merchandise presentations and focused marketing tactics.

Overall full-year sales increased 3 percent, reaching $4.8 billion, up from $4.6 billion in the previous year. Comp-store sales climbed about 4 percent.

For the 12 months, net income also moved into the black, hitting $73.7 million, compared with a loss of $309.5 million the previous fiscal year. On a pro forma basis, 12-month net income was $9.8 million, compared with a loss of $88.9 million in the prior year.

In the first quarter of its current fiscal year, OfficeMax expects comp-store sales above the mid-single digit range, with full-year overall sales expected at somewhat above $5 billion. Year-end comps are forecast for the mid-single digit range.