UBS on U.S. Hardlines Retail: Looking at Office Supply Sales Trends
Tweet Send to a FriendGet Alerts ODP Hot Sheet
Price: $4.31 +0.94%
Rating Summary:
1 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
1 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade ODP Now!
UBS on U.S. Hardlines Retail: Looking at Office Supply Sales Trends
Analyst, Michael Lasser, said, "We are expecting another mixed reporting season for the office supply retailers, which begs the question what will it take for this sector to improve? The last time all three companies generated a positive retail NA comp simultaneously was 3Q’06 suggesting OfficeDepot (NYSE: ODP), OfficeMax (NYSE: OMX), and Staples (Nasdaq: SPLS) are trading share of a declining sector (especially in light of the 3mm jobs created since the most recent economic trough). For the first quarter, we forecast a 1% comp at SPLS, 0% at OMX, and -5% at ODP (though leap year could help). On the NA contract side, we are looking for better results with a 1.0% to 1.5% increase for each company."
"We remain convinced that the industry needs to experience some capacity rationalization either through consolidation or more unilateral store closures. While it doesn’t appear the sector is any closer to seeing near-term M&A activity, our pricing survey work (figure 13) shows Amazon.com (Nasdaq: AMZN) offers a 20% discount on a basket of office supplies indicating consumers are unlikely to be harmed by fewer players."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Michael Lasser, said, "We are expecting another mixed reporting season for the office supply retailers, which begs the question what will it take for this sector to improve? The last time all three companies generated a positive retail NA comp simultaneously was 3Q’06 suggesting OfficeDepot (NYSE: ODP), OfficeMax (NYSE: OMX), and Staples (Nasdaq: SPLS) are trading share of a declining sector (especially in light of the 3mm jobs created since the most recent economic trough). For the first quarter, we forecast a 1% comp at SPLS, 0% at OMX, and -5% at ODP (though leap year could help). On the NA contract side, we are looking for better results with a 1.0% to 1.5% increase for each company."
"We remain convinced that the industry needs to experience some capacity rationalization either through consolidation or more unilateral store closures. While it doesn’t appear the sector is any closer to seeing near-term M&A activity, our pricing survey work (figure 13) shows Amazon.com (Nasdaq: AMZN) offers a 20% discount on a basket of office supplies indicating consumers are unlikely to be harmed by fewer players."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: A.G. Lafley Gives Procter & Gamble (PG) Investors 'New Hope', UBS Upgrades to Buy
- Toll Bros. (TOL) Estimates/PT Raised at Compass Point
- Deutsche Bank Starts Kodiak Oil & Gas (KOG) at Hold
Create E-mail Alert Related Categories
Analyst Comments, Retail SalesRelated Entities
UBS
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
