OfficeMax Reports Q4 Loss, Lower Sales

By Steve Smith On Feb 23 2009 - 8:00am

OfficeMax reported a $396 million net loss and a double-digit percent drop in sales for its fiscal fourth quarter, ended Dec. 27.

Total fourth-quarter sales dropped 14.3 percent to $1.88 billion compared with the fourth quarter of 2007. OfficeMax reported a net loss of $396.0 million for the quarter, compared with net income of $70.5 million in the previous year's fourth quarter.

For the year, total sales decreased 9 percent to $8.27 billion compared with 2007. OfficeMax reported a net loss for the year of $1.67 billion, compared with income of $203.4 million in 2007.

In its retail segment, sales decreased 9.7 percent to $929.2 million in the fourth quarter of 2008, compared with the prior year's fourth quarter, reflecting a same-store sales decrease of 13.6 percent partially offset by sales from new stores.

Retail same-store sales for the fourth quarter of 2008 declined across all major product categories due to weaker small-business and consumer spending.

For the full-year 2008, retail segment sales decreased 7.2 percent to $3.96 billion, compared with 2007, reflecting a same-store sales decrease of 10.8 percent, again partially offset by sales from new stores.

Retail segment operating loss was $83 million in the fourth quarter of 2008. The segment's adjusted operating income was break-even, compared with operating income of $39.1 million, or 3.8 percent of sales, in the fourth quarter of 2007.

For the full-year 2008, retail segment operating loss was $505.1 million in 2008. The segment's adjusted operating income was $61.2 million, or 1.5 percent of sales, in 2008, compared with operating income of $173.7 million, or 4.1 percent of sales, in 2007.

OfficeMax ended 2008 with a total of 1,022 retail stores, consisting of 939 retail stores in the U.S. and 83 retail stores in Mexico.