So on a consolidated basis, we were able to offset some of the costs that we saw as the shift and mix occurred and more of the channel was to the retail side or to the stay-at-home side. We have direct supplies serving our large enterprise customers, a robust e-commerce platform serving both businesses and consumers, many retail locations supporting those products and services and about 6,500 technologies support personnel including our tech field force serving the technology and service support needs of our customers. Great. Over the next few quarters, I plan to focus my time on a few key areas. Maintain a well-stocked office breakroom. We'll obviously let Tim get to you with offline with some of the more specifics. Obviously, we focus a lot on cash generation as well. This promotion is for Rewards members only. Toggle navigation Abercrombie & Fitch. But again, it's always about getting the right cost structure in place and making sure we deliver the right essential products and services for people. If you look at how we exited the quarter versus where we started, our cost model's in the right place and really proud of the team from an ability to derive cash. Can you maybe -- trying to get at what the baseline SG&A run rate is going forward? Bloomberg the Company & Its Products The Company & its Products Bloomberg Terminal Demo Request Bloomberg Anywhere Remote Login Bloomberg Anywhere Login Bloomberg Customer Support Customer Support What I'm most proud of, as you look at, this is our ability to really emphasize and confirm our strategy, we can be more than an office supply company and we would -- look what we did with PPE from zero to a $100 million in 90 days, that's pretty impressive. The combination of all these components gives us a balancing confidence as we navigate the current challenges in front of us as well as we continue to invest in building upon our B2B platform to pursue higher growth in the future. The outbreak of COVID-19 caused significant business disruption for our B2B customers and many schools. Included in the non-cash asset impairment charges was an impairment related to goodwill and intangibles at CompuCom and in our contract business, mostly related to the COVID-19 impact to overall business conditions. Through its banner brands Office Depot®, OfficeMax®, CompuCom® and Grand&Toy®, the company offers its customers the tools and resources they need to focus on their passion of starting, growing and running their business. Join to Connect. Investor Relations Media Relations Corporate Sustainability. Investor Relations Fireside Chat Series: Microsoft Teams; Virtual Meeting. This is uncharted territory for the market and we may have an impact on buying patterns with scenarios ranging from an increase in demand for certain school products, supplies and technologies to establish remote learning to some scenarios showing less demand in certain categories, backpacks for example, if there are prevalent delays in openings. Office Depot replaced its consumer-grade devices and migrated its store, distribution center and delivery software applications to the Android™ operating system (OS) and deployed 10,000 enterprise-grade Zebra TC51 touch computers – enhancing the performance of store and distribution center associates. Our recent announcement regarding Maximize B2B continues our strategic pivot to becoming a platform that our customers can rely on for their business needs. Customer Service; Chat not available . Can I listen to Farfetch's quarterly results conference calls with analysts? Few supply chains in North America have this capability, enabled us to consistently and reliably serve customers no matter what channel they choose for our products and services. During the quarter, we recorded charges totaling $456 million, consisting of $401 million of non-cash asset impairment charges and $65 million of restructuring cost, primarily associated with our business acceleration plan and recently announced Maximize B2B program, which I will go into more detail shortly. See you at the top! back to top. Can you give us what the run rate growth or decline for the business is in July so far? In total, we generated $2.2 billion of revenue, down about 17% in the quarter relative to last year almost entirely due to the effects of COVID. So how are you broadly trying to position yourselves from an assortment perspective and a promotion perspective around that technology category? In my quick analysis, I was truly impressed at the agility of the team in scaling BOPIS during the quarter helping to meet our customer needs in ways that work for them. The strength of these assets along with strong free cash flow growth and the ability to generate substantially higher EBITDA growth over time was very compelling and I believe there is a tremendous opportunity to create significant value at ODP, expand our multiple and deliver substantial long-term growth. Any other product or company names mentioned herein are the trademarks of their respective owners. So we feel good about that. Anthony will then review the Company's financial results, including highlights of our divisional performance and following Anthony's comments we will open up the line for your questions. Office Depot, Inc. Names Timothy J. Perrott Vice President of Investor Relations Posted on 08/06/2018 32 Office Depot, Inc. (NASDAQ:ODP), a leading omnichannel We also sanitize our facilities and required our employees in our supply chain and distribution operations to wear Personal Protective Equipment and continue to promote social distancing by staggering shifts and increasing space in common areas. We have continued the actions we took in the early stage of the outbreak to enhance the safety protocols to help protect our employees and create a safer work environment for our customers. Share price €129.80 +0.58% 18 Dec 2020 at 17:37:10. But a huge focus on low cost model and we'll continue to drive that in the future. And Chris, this is Anthony. We're seeing that strength to continue. Our network touches many customers and we will be focusing on delivering even more value for our customer base across all of our channels. So we're not going to see the same level of degradation at the top line that we saw in Q2 continuing but there is going to be continued headwinds. Investor Relations 561-438-4629 Tim.Perrott@officedepot.com. Cleaning and breakroom and technology products all sporting double-digit increases in sales relative to last year, helping to offset lower demand in other categories. I'm also happy to announce that we are joined by Anthony Scaglione, our newly appointed Executive Vice President and CFO, who will provide additional details on our financial results. Total revenue of $2.2 billion in the second quarter was down 17%, largely driven by the effects of the COVID-19 outbreak resulting in lower sales throughout our divisions as well as 60 fewer stores in service relative to last year. Just to add some color on the cost side. Hi, good morning. Number two, continue to drive a low cost business model. By continuing to browse the site you are agreeing to our use of cookies. About Us; Our Brands; Corporate Governance; FAQs; Contact Us; A&F Gives Back That concludes the Q&A session for today. https://officedepotchat-en.custhelp.com/app/chat/BS2_reactive_chat_launch, 20% off your qualifying regularly priced purchase, https://www.officedepot.com/images/us/od/, /account/v2/editBillingDisplay,/orderhistory/subsManager,/orderhistory/submitReturn,/account/accountSummaryDisplay,/account/loginAccountDisplay,/account/myfiles,/csl/listAll, https://request.eprotect.vantivcnp.com/eProtect/js/payframe-client3.min.js?d=20201221, Office Depot Diversity Catalog (HUB Catalog). Office Depot also named Michael Allison, who was chief people officer and has been with the company since 2006, to the new role of executive vice president, chief administrative officer. During the call, we will use some non-GAAP financial measures as we describe business performance. Sales were $214 million, down 17% versus the prior year period. Because of this reported sales in the quarter for BSD were $1.02 billion, a decrease of 23% compared to the prior year period. Stock Advisor launched in February of 2002. We initiated our Maximize B2B restructuring plan, a multi-year plan designed to enhance growth in our B2B platform, reduce retail exposure, while continuing to drive a variable, low-cost model. Our capabilities are extremely agile, having the flexibility to adjust to the most cost effective sourcing scenarios, allowing us to capture new opportunities very quickly. Our retail division continued to drive reasonably strong demand for the quarter for essential products for businesses in homes. Lastly, we have a very large sales marketing presence throughout North America and has forged strong relationships with business enterprise customers creating strong brand recognition with the consumers built on a reputation for quality and service. We have implemented strategies to address including working with our distribution partners and evaluating delivery schedules and fees, all of which are helping control delivery costs going forward. Before reviewing the financial results, I'd like to take a few moments to share with you why I joined ODP. Danny Jovic Media Relations 561-438-1594 Danny.Jovic@officedepot.com Office Depot, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $2.78 billion for the quarter ended September 2019, missing the Zacks … Thank you. And can you maybe just touch a little bit on the remote status in terms of the work-from-home and the cost to serve there and just how you're kind of driving that down and how you see that? We adjusted real quickly our finance and supply chain and our merchandising teams of how we serve those customers. In terms of revenue generation our increasingly diverse product portfolio and multiple routes-to-market helped us offset some of the conditions caused by the COVID pandemic. 561-438-1594. Your next question will come from the line of Michael Lasser. We're not going to add G&A for the sake of adding G&A. This is Tim Perrott and I'm here with Gerry Smith, our CEO. We're also proud of our support for our local communities during this challenging times. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Tim perrott danny jovic investor relations media relations 561 438 4629 561 438 1594 email protected email protected office depot inc. For all other corporate inquiries including customer care issues please call the home depot store support center at 770 433 8211 or toll free 1 800 654 0688. October 27, 2020 2:30 PM - PT. With that, operator, we will now open up the line for questions. So we had a very comprehensive cost model. We've substantially improved our cost management. We have built a powerful and agile platform of assets to meet the needs of our customers, which has helped us achieve balance during the challenging business environment in 2020. I will now turn the call back over to Office Depot's CEO, Gerry Smith for any closing remarks. For all other corporate inquiries including Customer Care issues please call The Home Depot Store Support Center at 770-433-8211, or toll free 1-800-654-0688. ©2018 Office Depot, Inc. All rights reserved. So we did do some -- we worked with some of our distribution partners in our own fleet to adjust that from an operational execution perspective. Office Depot, Inc. Q4 2019 ... Timothy J. Perrott-- Vice President of Investor Relations. Number three, continue to leverage our assets across supply chain and procurement, expanding the product and services that we offer our customers, driving value and building upon our sourcing capabilities. Office Depot (ODP) Investor Presentation - Slideshow. You have the BAT program and cost efficiency has always been a focus but then there is the variable cost component. And so -- but as I said in my part, there is so much uncertainty in the back half, which is why we pulled guidance going forward but we do think we are in a very good position. Company name is Elevation. This is Gerry, so I appreciate the question. After submitting your request, you will receive an activation email to the requested email address. Well, the back-to-school, obviously, a lot of uncertainty there and it's going to be dynamic across the country I think in terms of when school reopens and when they do reopen, what does the model looks like? Great. Office Depot Inc (NASDAQ:ODP)Q2 2020 Earnings CallAug 5, 2020, 9:00 a.m. And so, we're always -- Maximize is -- one of the primary goals of Maximize is to drive from a fixed cost model to a low-cost -- to a variable cost model that allows us that flexibility, although this is never repeated the COVID experience but we believe this has demonstrated the ability for us to pivot and successfully manage cash and cost in a very, very difficult environment. But overall, we're going to keep our SG&A, continue to be focused on where the business is heading and really keep that low-cost business model front and center. With that, I will turn the call over to Anthony for overview of our financial results. Find out more about cookies Close message. Aligned with our strategic objectives, we made significant progress across our platform on a number of fronts. As we have witnessed, we are seeing a variety of scenarios playing out regarding school reopenings with some systems electing to lay opening while others opening or deploying a hybrid model. Microsoft Fiscal Year 2021 First Quarter Earnings Conference Call; Satya Nadella, CEO and Amy Hood, EVP & CFO. Chris McGinnis from Sidoti & Company. That obviously created a lot of disruption in a lot of our channels but we were able to pivot in categories as well as execution across both the services and product side and we saw improvement. Higher average order volumes and sales per shopper along with our diverse product mix and channel availability helped offset some of the negative impact to store traffic. For DBI shares: Computershare Phone: 1.800.622.6757. Mr. Perrott, you may now begin. Now turning to how this is helping us navigate one of the most challenging business environments in our nation's history, please turn to Slide 6 for business highlights. Our tech support teams at CompuCom transitioned to a work-from-home environment very early in the crisis as they continue to provide uninterrupted support for many of our customers who transitioned to a distributed workforce. We have our fingers on the pulse of the business activity and are monitoring across our channel, so we stay agile and continue to leverage our supply chain, our product breadth and our routes-to-market, particularly e-commerce help us continue to drive the business and revenue growth. To take advantage of exclusive offers like these, join Office Depot® OfficeMax® Rewards now! I mean, you cover wide geographies and do you see any indication that maybe they're just buying early, are you able to look at that in terms of areas where the students are going back-to-school where -- or versus the work-from-home, sorry, learn-from-home environment will stay in place? I'm very proud of our team in accomplishing this in such a short period of time and the takeaway here is the strength of our platform and the sourcing and execution capabilities we have. Before I turn it over to Anthony, I want to make a few comments about our focus and position going into the second half of the year. We did see early in the quarter. However, as a result of the impact that COVID-19 has had on our business conditions within our segments, we performed an assessment of goodwill and intangible values in the second quarter. Please Log In to view this content. Beyond the office, our wide selection of school supplies including backpacks, notebooks, pens and laptop computers to help your student excel. I'm pretty darn proud of the team for adjusted operating profitability as well as a pretty much net cash neutral from that perspective. We also made significant progress on our B2B transformation plan, improving our foundation and building our capabilities to drive long-term profitable growth. In our retail stores, we've installed counter shields and require employees to use masks and gloves to help protect customers and employees during interactions. Adding to this, was our deliberate effort to reduce certain unprofitable accounts to improve future profitability. Save on printer ink and toner to keep your office efficient and productive. This increase was largely related to lower SG&A from cost efficiency initiatives and an improvement in distribution and inventory management costs as well as lower operating lease cost recognized as a result of the new lease accounting standard. Looking at Slide 11, we highlight the performance of the CompuCom division. Additionally, Gerry will outline and discuss the progress we made in the quarter on our B2B pivot and the key drivers of our business. 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