Office Depot Inc

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  • uploads/// Year Total Return Comparison
    Earnings Report

    Office Depot: Why the Stock Seems to Have Bottomed Out

    Office Depot’s (ODP) fundamental performance has taken a toll on the company’s stock price.

    By Mark Jonker
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    Miscellaneous

    Pricing Impact Of A Potential Staples-Office Depot Combination

    Pricing pressures come from rival superstores as well as a variety of discount stores and online retailers. Therefore, a merger likely won’t result in higher prices for consumers.

    By Phalguni Soni
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    Earnings Report

    Staples Reports Fiscal 3Q15 Results: Revenue and Income Falls

    Staples (SPLS) has a market cap of $7.8 billion, and its YTD (year-to-date) price movement has been falling since June 2015.

    By Gabriel Kane
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    Miscellaneous

    Why Online Sales Are A Competitive Advantage For Staples

    The growth in ODP and OMX’s combined sales fell—compared to Staples. They were ~143% of SPLS’s sales in 2007. This is just over $8 billion. That fell to $7.3 billion in 2013.

    By Phalguni Soni
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    Miscellaneous

    Office Supplies Retail: Regulation, Competition, And Consolidation

    There aren’t many large brick-and-mortar players left in the market. The industry faced stiff competition from online retailers like Amazon (AMZN).

    By Phalguni Soni
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    Earnings Report

    Most Analysts Recommend to “Hold” Staples’ Stock

    Out of the 17 analysts covering Staples’ stock, 65% have given it “hold” recommendations, whereas the remaining 35% have given it “buy” recommendations.

    By Mark Jonker
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    Miscellaneous

    Valuing Office Depot And Staples—Including Merger Synergies

    The estimated cost synergies from a merger between SLPS and ODP would likely be $1.2–$1.5 billion after the companies’ integration is complete.

    By Phalguni Soni
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    Miscellaneous

    Change Is Needed In The Office Supplies Retail Segment

    Although the office supplies industry is a niche retail segment, it’s highly fragmented. The industry has many players. The rivalry between the players is intense.

    By Phalguni Soni
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    Miscellaneous

    Deal Or No Deal: SPLS’s Ability to Finance ODP’s Purchase

    Therefore, a possible acquisition by SPLS will likely be an all-stock deal. This was the case in the ODP-OfficeMax (OMX) merger of equals.

    By Phalguni Soni
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    Miscellaneous

    Mergers And Acquisitions In Retail—Are They Competitive?

    A possible M&A (mergers and acquisitions) deal between Staples (SPLS) and Office Depot (ODP) has several positive factors. First, competition increased substantially since 1997.

    By Phalguni Soni
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    Miscellaneous

    Why Office Depot And OfficeMax Were A Merger Of Equals

    Starboard’s interest in the office supplies industry is well known. Starboard disclosed a ~14.8% stake in Office Depot (ODP) in 2012. It has been pushing ODP to reduce its store size and cut costs.

    By Phalguni Soni
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    Macroeconomic Analysis

    LALT: A True Hedge ETF

    The PowerShares Multi-Strategy Alternative Portfolio ETF (LALT) is one of those rare alternative ETFs that tries to replicate the performance of its index by active management of its assets.

    By Ivan Kading
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    Earnings Report

    Why Did Office Depot’s Sales Fall So Much in 4Q15?

    In 4Q15, Office Depot’s (ODP) sales (VCR) fell 9%. Sales responded to the closure of 56 stores in North America, which had a negative impact of 4.0%.

    By Mark Jonker
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    Miscellaneous

    Staples And Office Depot—Market Leaders In A Changing Industry

    Staples (SPLS) and Office Depot (ODP) are facing a challenging business environment. Their core product category is office supplies. Revenues are declining for office supplies.

    By Phalguni Soni
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    Consumer

    Office Depot’s Margin and Earnings for 1Q18

    Office Depot’s (ODP) gross margin contracted ~160 bps (basis points) to 23.6% since the cost of goods sold increased more than 8%.

    By Victoria Dean
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    Consumer

    Basics of Office Depot

    Office Depot is a global supplier of office products and services to businesses and consumers. The company has 64,000 employees.

    By Brent Nyitray, CFA, MBA
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    Company & Industry Overviews

    A Look at the Details of Home Depot’s Digital Update

    Home Depot has been following a strategy that leverages its brick-and-mortar store network and digital capabilities to create a seamless shopper experience.

    By Phalguni Soni
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    Company & Industry Overviews

    Why Amazon’s Business Prime Service Matters

    Amazon (AMZN) recently expanded its corporate-focused e-commerce offerings with the launch of its Amazon Prime version for businesses.

    By Ruchi Gupta
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    Consumer

    Office Depot Continues to Struggle, Stock down ~26% This Year

    Year-to-date, Office Depot stock had fallen ~26% as of July 13, to $2.62.

    By Victoria Dean
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    Consumer

    Office Depot Stock Surged after 1Q18 Results

    Office Depot (ODP) stock rose 6.5% on May 10 after the company reported its 1Q18 results on May 9.

    By Victoria Dean
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    Consumer

    Where Office Depot Stock Is Heading

    As of May 3, Office Depot (ODP) stock had fallen 35.9% YTD (year-to-date).

    By Victoria Dean
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    Consumer

    What Analysts Recommend for Office Depot Stock

    Of the eight analysts covering Office Depot (ODP) stock, 63% have rated it a “hold,” and 25% have rated it a “sell.”

    By Victoria Dean
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    Company & Industry Overviews

    Could Office Depot’s Margins Be under Pressure in 2018?

    Office Depot’s (ODP) margins could stay under pressure as it diverts resources to transforming into a services-driven company.

    By Victoria Dean
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    Company & Industry Overviews

    Office Depot Sales Numbers: What Can We Expect Next?

    For fiscal 2018, Office Depot management has projected a 5% decline in sales to $10.6 billion.

    By Victoria Dean
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    Consumer

    Office Depot Stock Has Shed 42% of Its Value in 2018

    Office Depot (ODP) has been seeing a downtrend in its stock for some time. The stock has fallen 41.8% YTD as of April 10, 2018.

    By Victoria Dean
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    Consumer

    Office Depot’s Bottom Line Falls 27.3% in Fiscal 4Q17

    Adjusted earnings fall 27.3% In fiscal 4Q17, Office Depot (ODP) had adjusted EPS (earnings per share) of $0.08, which came better than the analysts’ projection of $0.07 but fell 27.3% YoY (year-over-year). The company reported EPS from continuing operations of -$0.09 in fiscal 4Q17, compared with $0.10 in fiscal 4Q16. A net tax expense of $68 million related […]

    By Victoria Dean
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    Consumer

    A Look at Office Depot’s Fiscal 4Q17 Margins

    Fiscal 4Q17 margin performance Between fiscal 4Q16 and 4Q17, Office Depot’s (ODP) gross margin contracted ~50 basis points to 23.5%. Its operating margin narrowed by 2.3% (20 basis points), primarily due to lower sales offset by lower SG&A (selling, general, and administrative) expenses. Its adjusted operating margin stayed at 3.7%. The company has been cutting costs and […]

    By Victoria Dean
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    Consumer

    Why Office Depot’s Fiscal 4Q17 Sales Disappointed

    Quarterly revenue On February 28, 2018, Office Depot (ODP) reported its fiscal 4Q17[1.ended December 30, 2017] results. The company had sales of $2.58 billion, missing analysts’ estimate of $2.61 billion and marking a 5.3% fall YoY (year-over-year). Both its Retail and Business Solutions segments witnessed lower transaction volumes, dragging down their top line. On an adjusted basis (excluding the effects […]

    By Victoria Dean
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    Consumer

    Office Depot Stock Falls after Dismal Fiscal 4Q17 Results

    Office Depot (ODP) announced its fiscal 4Q17 results on February 28, 2018. In this series, we’ll analyze the results in depth.

    By Victoria Dean
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    Consumer

    How Analysts View Office Depot before Its Upcoming Earnings

    Ahead of Office Depot’s (ODP) upcoming 4Q17 results, most analysts covering the stock have maintained a “hold” rating.

    By Victoria Dean
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    Company & Industry Overviews

    Staples Was the S&P 500’s Top Gainer on June 28

    Sycamore is expected to buy Staples for $6.9 billion—one of the biggest retail deals. Staples rose 8.4% and closed the day at $9.93.

    By Val Kensington
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    Miscellaneous

    Staples-Office Depot: Another Merger Bites the Dust

    The Staples-Office Depot deal was always a long shot. The spread was always wide. The Obama administration is getting tougher on antitrust enforcement.

    By Brent Nyitray, CFA, MBA
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    Macroeconomic Analysis

    The Relationship between the Retail Industry and the US Economy

    When we compare the S&P 500 (SPX) with the SPDR S&P Retail ETF (XRT), the retail ETF has beaten the broad market index on a trailing one-year basis.

    By Mark Jonker
  • uploads///SPLS ODP background
    Miscellaneous

    Don’t trade the Office Depot spread like a typical arb spread

    Once the proxy comes out, check the transaction background and see if they ran an auction. If not, a private equity buyer may step in after the deal breaks.

    By Brent Nyitray, CFA, MBA
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    Miscellaneous

    Handicapping the risk-reward balance of the Office Depot deal

    Staples stock was up on the announcement, and the analyst community understands the pressure this segment is under. At any rate, no Staples vote is needed.

    By Brent Nyitray, CFA, MBA
  • uploads///SPLS ODP rationale
    Miscellaneous

    Parsing the Office Depot Material Adverse Change clause, part 1

    Regarding the Office Depot and Staples deal, the MAC clause lays out the circumstances under which Staples can back out of its deal with Office Depot.

    By Brent Nyitray, CFA, MBA
  • uploads///SPLS ODP synergies
    Miscellaneous

    The Office Depot–Staples merger is about cost savings

    Staples expects to spend $1 billion up front in order to achieve $1 billion in annual synergies—usually meaning reducing workforce—beginning in year three.

    By Brent Nyitray, CFA, MBA
  • uploads///SPLS ODP overview
    Miscellaneous

    Understand the basics of the Staples–Office Depot merger

    If another bidder tops the Staples bid, and Office Depot is unable to get shareholder approval, it will owe Staples a breakup fee of $185 million.

    By Brent Nyitray, CFA, MBA
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    Miscellaneous

    Valuing Office Depot—Comparing Buyout Transactions In Retail

    PetSmart (PETM) is a specialty pet goods retailer. On December 14, PETM announced its leveraged buyout, or LBO, by an investor group. The investor group is led by BC Partners.

    By Phalguni Soni
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    Miscellaneous

    Online Sales Channels—Staples And Office Depot

    During the last fiscal year—ending on February 1, 2014—almost half of SPLS’s sales came from its online sales channel. Its online sales were nearly flat from 2011 to 2013.

    By Phalguni Soni
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    Fund Managers

    Starboard’s Track Record As An Activist Investor

    Starboard was founded in 2002. It’s based in New York. Starboard’s strategy uses fundamental investing principles to identify deeply-undervalued, publicly-listed US corporations.

    By Phalguni Soni
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    Miscellaneous

    Why Is Starboard Interested In Staples And Office Depot?

    Recent company filings revealed that Starboard owned significant stakes in the first and second players in the office supplies market—Staples (SPLS) and Office Depot (ODP).

    By Phalguni Soni
  • Company & Industry Overviews

    Bricks and mortar retailers may push back against Google Express

    Google Express helps retailers grow business. But it also enables customers to avoid the need to visit stores, which reduces impulse purchases.

    By Puneet Sikka
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