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OfficeMax Posts Q3 Profit, Lower Sales

10/29/2009 11:32:01 AM Eastern

Naperville, Ill. - OfficeMax reported a double-digit drop
in sales, but a $5.7 million profit for the third quarter.

Total sales were $1.83 billion in the third quarter, down 12.6
percent compared to the third quarter of 2008.

Net income available to OfficeMax common shareholders of $5.7
million compared with the prior year's net loss in the came category of $432.6
million. Operating income for the quarter was $25.2 million compared with the
prior year's operating loss of $681.5 million.

 

OfficeMax Retail segment sales decreased 11 percent to $932.3
million in the third quarter of 2009 compared to the third quarter of 2008,
reflecting a same-store sales decrease of 11.5 percent (a same-store sales
decrease of 10.0 percent in local currencies), partially offset by sales from
new stores.

Retail same-store sales for the third quarter of 2009 declined
across all major product categories primarily due to weaker small business and
consumer spending, unfavorable Mexican Peso exchange rates, and the influenza epidemic
in Mexico.

Retail segment gross margin decreased to 27.4 percent in the
third quarter of 2009 from 28.5 percent in the third quarter of 2008, primarily
due to deleveraging of fixed occupancy costs from the same-store sales decrease,
the chain reported.

OfficeMax ended the third quarter of 2009 with a total of 1,010
retail stores, consisting of 932 retail stores in the U.S. and 78 retail stores in Mexico. During the third quarter of
2009, OfficeMax closed one retail store in the U.S.
and one in Mexico.
For the full year 2009, OfficeMax expects to open 12 retail stores, and to
close up to 25 retail stores, of which, 11 have opened and 23 have closed
during the first nine months of 2009.