Max profits up despite sales pressure February
2008 – Naperville (IL), USAOfficeMax has said that its adjusted net
profits for 2007 increased by 18 percent despite a drop in comparable
sales in its retail and US contract operations.Overall sales rose by
1.2 percent to $9.1 billion thanks to new store openings, but
comparable retail sales were down by 0.5 percent, while contract sales
in the US fell by 1.2 percent.
Furthermore, the sales drop was
far more pronounced in the fourth quarter. Same-store retail sales slid
by 7.3 percent in the quarter, with US contract sales down by 7.8
percent.However, the bottom line improved thanks to cost-cutting
measures and some improvement in margins.CEO Sam Duncan said that he
expected the pressure on sales to continue at the beginning of 2008,
and that the company would continue to pursue margin and cost
management initiatives throughout the year.