The ODP Corporation reported a significant decline in its financial performance for the fiscal year ended December 28, 2024, with total sales decreasing by 11% to $6.99 billion, down from $7.82 billion in 2023. The company's ODP Business Solutions Division saw an 8% drop in sales to $3.58 billion, while the Office Depot Division experienced a 14% decline to $3.36 billion. The Veyer Division, however, reported a 54% increase in sales, reaching $54 million, attributed to expanded supply chain services provided to third-party customers. The overall gross profit fell by 18% to $1.45 billion, with a gross margin of 21%, down from 23% in the previous year.
The company undertook several strategic initiatives during the year, including the sale of its Varis Division, which was completed on October 18, 2024. This sale was part of a broader restructuring effort aimed at optimizing operations and reducing costs. The ODP Corporation also continued its Maximize B2B Restructuring Plan, which has led to the closure of 340 retail stores since its inception in 2020. In 2024 alone, 47 stores were closed as part of this initiative. The company is now focusing on its core strengths in office supplies while expanding into adjacent markets, including hospitality and healthcare.
Operationally, ODP's workforce decreased to approximately 19,000 employees as of January 25, 2025, down from 20,000 the previous year, reflecting the impact of planned store closures and cost reduction measures. The company reported a diluted loss per share of $0.08, compared to earnings of $3.50 per share in 2023. The decline in profitability was also influenced by asset impairment charges totaling $33 million, primarily related to retail store locations.
Looking ahead, ODP Corporation has announced a new restructuring plan called "Optimize for Growth," which aims to realign its organizational structure and product offerings to better position itself in the B2B marketplace. This plan includes reallocating capital towards investments in resources and infrastructure while reducing fixed costs associated with its retail footprint. The company anticipates incurring cash restructuring costs between $185 million and $230 million as it implements this strategy, which is expected to be completed by 2028. Despite the challenges faced in 2024, ODP remains focused on stabilizing its operations and pursuing growth opportunities in the evolving market landscape.
About ODP Corp
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.