OfficeMax has forecast flat to slightly higher sales for the full 2011/12 year in the wake of a series of store closures in the US.
The global OP company said that total company sales for the second quarter would be flat to slightly lower as compared to the second quarter of 2011.
Retail segment sales decreased 2.7 per cent to US$912.3 million in the first quarter of 2012 compared to the first quarter of 2011, reflecting a same-store sales decrease of 2.1 per cent due to reduced store transactions.
Total sales were US$1.8 million in the first quarter, an increase of 0.5 per cent from the first quarter of 2011.
For the first quarter, OfficeMax reported operating income of US$17.8 million, compared to US$28.6 million in the first quarter of 2011.
Results for the first quarter included charges recorded in its retail segment related to store closures in the US. The effect of these charges reduced operating income by US$25.3 million and net income by US$15.4 million.
OfficeMax ended the first quarter with a total of 958 retail stores, including 84 stores in Mexico. During the first quarter, the company closed 23 stores in the US.
"We are off to a good start in 2012 and the team delivered solid first quarter results," said OfficeMax CEO Ravi Saligram. "We are making steady progress in executing the early stages of our strategic plan."
