OfficeMax Sales Down 1%
By Jeff Malester -- TWICE, 8/8/2005
Itasca, Ill. — OfficeMax's retail segment sales came in at $953.6 million, off 1 percent for the second quarter, ended June 25. Same-location sales in the second quarter decreased 2 percent.
The declines were due primarily to soft sales in the company's technology and furniture categories, offset by strong sales growth in print and document services. The sales drop was also attributed to lower advertising spending in the second quarter, a strategy OfficeMax intended to reduce costs and to shift retail promotional activity toward the small business customer.
A larger-than-expected operating loss in the retail segment came in at $15.5 million in the second quarter, compared with a year-ago loss of $4.2 million. This decrease was due to lower sales; higher freight costs; and the company's re-merchandising initiative, which accelerated the clearance of discontinued inventory.
