This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Craig Gunckel has been appointed chief executive officer of The ODP Corporation, which runs retailers Office Depot and OfficeMax, parent Atlas Holdings announced Wednesday. Atlas also said its all-cash acquisition of ODP closed Wednesday. Gunckel replaces Gerry Smith, who left once the transaction was complete. The deal, valued at about $1 billion, was announced in ...

Core Insights - Xerox Holdings (XRX) reported mixed third-quarter 2025 results, with earnings exceeding the Zacks Consensus Estimate but revenues falling short [1][10] - The company's shares have declined 2.6% since the earnings release on October 30, reflecting market disappointment with the results [1] Financial Performance - Adjusted operating income for the quarter was $65 million, down 18.8% year-over-year, with an adjusted operating margin of 3.3%, a decrease of 1.9 basis points year-over-year [7] - Quarterly adjusted earnings were 20 cents per share, surpassing estimates by 4% but down 20% from the previous year [3][10] - Revenues totaled $1.96 billion, missing estimates by 4.5% but showing a year-over-year increase of 28.3% [3][10] Revenue Breakdown - Post-sale revenues reached $1.58 billion, up 32.7% year-over-year but below the estimate of $1.72 billion [5] - Equipment sales increased by 13% year-over-year to $383 million, exceeding the estimate of $338.5 million [5] - The Print and Other segment generated revenues of $1.74 billion, up 20.6% year-over-year, beating the estimate of $1.42 billion [5] Guidance and Outlook - For 2025, the adjusted operating margin is projected to be approximately 3.5-4.5%, with a midpoint of 4% lower than the previous estimate of 4.5% [2] - Free cash flow is anticipated to be between $150-$250 million, with a midpoint of $200 million, down from the prior view of $250 million [2] - Operating cash flow for 2025 is expected to be approximately $245 million, reduced from the previous estimate of $345 million [2] Market Performance - Xerox's shares have depreciated 66.1% over the past year, contrasting with a 51.2% decline in the Office Supplies industry and a 15.6% rise in the S&P 500 [4]

Financial Data and Key Metrics Changes - Third quarter sales decreased by 9%, with a favorable foreign exchange impact of almost 2% [13] - Gross profit for the third quarter was $127 million, a decrease of 8%, but the margin rate improved by 50 basis points to 33% [13][14] - Adjusted operating income for the third quarter was $39 million compared to $45 million a year ago [14] - Adjusted EPS was in line with expectations despite lower sales [5][13] - Year-to-date adjusted free cash flow was $42 million, including $17 million from the sale of two owned facilities [17] Business Line Data and Key Metrics Changes - In the Americas segment, comparable sales declined by 12%, impacted by lower demand and timing for Nintendo Switch 2 accessory sales [15] - The international segment saw comparable sales decline by 7%, with underlying demand down in Europe, particularly in Germany, the UK, and France [16] - Sales in the technology accessories category were modestly down but expected to return to growth in the fourth quarter due to new product launches [9][24] Market Data and Key Metrics Changes - Sales for the back-to-school season in the U.S. and Canada were down mid-single digits, influenced by purchasing decisions in response to tariffs [6][7] - In Latin America, sales were weaker than expected due to a constrained consumer, with trade down prevalent [7][8] - Demand in Europe was soft, while Australia and Asia showed increases, indicating mixed demand across international markets [9] Company Strategy and Development Direction - The company is focused on a $100 million multi-year cost reduction program, realizing an additional $10 million in savings in the third quarter [5] - There is a commitment to pivot the business towards higher growth categories while streamlining operations and optimizing the cost structure [12] - The company is evaluating strategic opportunities, including potential acquisitions and licensing agreements, to reposition its product portfolio into faster-growing categories [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in seeing improved sales trends in the fourth quarter, driven by the holiday season and new product launches [24][18] - The evolving tariff environment and cautious consumer spending remain challenges, but management believes they are well-positioned to navigate these dynamics [18][19] - The company reaffirmed its sales and adjusted EPS guidance for the full year, expecting reported sales to be down 7% to 8% [18] Other Important Information - The company has no debt maturities until 2029 and maintains a focus on productivity savings and cost management [19] - The company returned $7 million to shareholders in the form of dividends during the quarter [17] Q&A Session Summary Question: What underpins your confidence for fourth quarter improvement? - Confidence is based on expected growth in technology accessories and new product launches, along with a shift in timing for price increases and orders from Q3 to Q4 [24][25] Question: Can you elaborate on the trade-down dynamic? - Trade down is observed across most geographies, but the company is well-positioned with a brand portfolio that caters to various price points [29] Question: Are there plans for additional acquisitions? - The company is always evaluating accretive acquisitions and licensing agreements to enhance its product portfolio [31] Question: Have you seen any pickup in Brazil for back-to-school? - Results are consistent with expectations, with customers deferring purchases later into the quarter [34] Question: How do you manage product cannibalization with new launches? - New products are generally introduced at higher gross margin averages, and the company aims to minimize cannibalization while providing value across price points [35][36] Question: What opportunities exist for channel expansion? - The company sees opportunities in verticals like healthcare and is focusing on developing relationships with end users [37] Question: How meaningful is the revenue shift from Q3 to Q4? - The shift is significant enough to impact guidance, but specific details are not publicly defined [40][42] Question: Were tariff-related price increases passed through dollar-for-dollar? - The goal was to pass through price increases, but not all were implemented in Q3; margin improvement was also due to cost reductions [50] Question: What gives you confidence in Brazil's market despite challenges? - There have been modest improvements in trends, but caution remains as the back-to-school season progresses [52]

Core Insights - Xerox Holdings Corporation reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, but down from $0.25 per share a year ago, indicating an earnings surprise of +400.00% [1] - The company posted revenues of $1.96 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 4.5%, compared to $1.53 billion in the same quarter last year [2] - Xerox shares have declined approximately 59.3% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of Xerox's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $2.16 billion, while the estimate for the current fiscal year is -$0.20 on revenues of $7.25 billion [7] Industry Context - The Office Supplies industry, to which Xerox belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Core Insights - The "Double Eleven" e-commerce promotion will officially start on October 9 at 20:00, coinciding with the release of new "national subsidies" for consumers [2] - A total of 690 billion yuan in special long-term bonds has been allocated to support the consumption of old-for-new policies, completing the annual target of 300 billion yuan in central funding [2] - The implementation of the old-for-new policy has led to significant consumer engagement, with 330 million people applying for subsidies from January to August, resulting in over 2 trillion yuan in sales [2] Group 1 - The new round of "national subsidies" is expected to enhance the attractiveness of products during the "Double Eleven" sales event [2] - The government aims to ensure effective use of the subsidy funds while preventing fraudulent claims and ensuring product quality and price regulation [2] - Retail sales of home appliances, audio-visual equipment, cultural office supplies, furniture, and communication devices have seen year-on-year growth rates of 28.4%, 22.3%, 22.0%, and 21.1% respectively, contributing to a 4.6% increase in total retail sales of consumer goods [2]

Group 1 - ODP Corporation, owner of Office Depot and OfficeMax, has agreed to be taken private by Atlas Holdings for approximately $1 billion, with Atlas paying $28 per share, representing a 34% premium to the closing share price on September 19 [1][2] - The transaction is expected to close by the end of the year, pending regulatory and shareholder approvals [2] - ODP's CEO highlighted that Atlas brings industry understanding and operational expertise that will enhance ODP's B2B growth initiatives [3] Group 2 - Investors view the deal as positive but surprising due to ODP's history of unsuccessful merger attempts with Staples, which were blocked by the Federal Trade Commission [4][5] - ODP has faced pressure from activist investors and increased competition from e-commerce companies like Amazon and Walmart, leading to a decline in its market cap [6] - ODP operates around 830 stores, indicating its significant presence in the office supply retail market [6]

Financial Performance - Sales decreased to $1586 million from $1717 million [22] - Operating income increased to $9 million from $0.4 million [22] - Adjusted operating income decreased to $25 million from $33 million [22] - Adjusted EBITDA decreased to $47 million from $57 million [22] - Adjusted free cash flow increased to $13 million from $5 million [10, 22] - ODP Business Solutions revenue decreased 6% year-over-year [31] - Office Depot comparable store sales improved by approximately 200 basis points year-over-year [10, 28] Strategic Initiatives - The company is executing its "Optimize for Growth" plan to accelerate B2B growth [9, 15] - The company is expanding into the hospitality market, a $16 billion+ market segment [13, 14] - Veyer's revenue from third-party customers increased 90% year-over-year to $19 million [37] Outlook - The company expects continued improvements in performance trends and strong adjusted free cash flow generation in the second half of the year [8] - The company anticipates generating over $115 million in adjusted free cash flow for the full year 2025 [44]

Core Insights - Xerox Holdings (XRX) reported disappointing second-quarter 2025 results, with both earnings and revenues falling short of the Zacks Consensus Estimate [1][3] - The company's shares have declined 2.8% since the earnings release on July 31, and have depreciated 59.5% over the past year [1][3] Financial Performance - Xerox reported a quarterly adjusted loss of $0.64 per share, missing the consensus estimate of $0.10, and a significant decrease from the previous year's profit [3][7] - Revenues totaled $1.58 billion, which was 0.8% below the consensus estimate and a decline of 0.13% year-over-year [3][7] - Post-sale revenues were $1.24 billion, up 1.5% year-over-year but below the estimate of $1.27 billion [4] - Equipment sales decreased by 5.6% year-over-year to $336 million, slightly exceeding the estimate of $330.9 million [4] - The Print and Other segment's revenues fell 8.6% year-over-year to $1.37 billion, missing the estimate of $1.46 billion [4] Operating Metrics - Adjusted operating income was $59 million, down 30.6% year-over-year, with an adjusted operating margin of 3.7%, a decrease of 170 basis points [8] - Negative free cash flow was reported at $30 million, with cash and cash equivalents at $449 million, down from $576 million at the end of 2024 [9] Future Guidance - For 2025, Xerox anticipates revenue growth of 16%-17% at constant currency, with an adjusted operating margin projected at approximately 4.5% [10] - The company expects free cash flow to be around $250 million and operating cash flow to be approximately $345 million, with capital expenditures anticipated at $95 million [10]

Core Viewpoint - Acco Brands reported quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.29 per share, and down from $0.37 per share a year ago, indicating a -3.45% earnings surprise [1] Financial Performance - The company posted revenues of $394.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.28%, but down from $438.3 million year-over-year [2] - Over the last four quarters, Acco has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - Acco shares have lost about 28% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current Zacks Rank for Acco is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.26 on revenues of $382.43 million, and $0.94 on revenues of $1.53 billion for the current fiscal year [7] - The estimate revisions trend for Acco was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Office Supplies industry is currently in the top 39% of over 250 Zacks industries, suggesting that it has a favorable outlook compared to the bottom 50% [8]

Core Insights - Xerox Holdings Corporation reported a quarterly loss of $0.64 per share, significantly missing the Zacks Consensus Estimate of $0.1, representing an earnings surprise of -740.00% [1] - The company posted revenues of $1.58 billion for the quarter ended June 2025, which was a 0.75% miss against the Zacks Consensus Estimate, with no year-over-year revenue growth [2] - Xerox shares have declined approximately 38.1% year-to-date, contrasting with the S&P 500's gain of 8.2% [3] Company Performance - Over the last four quarters, Xerox has consistently failed to meet consensus EPS estimates, with only one instance of surpassing revenue expectations [2] - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $1.55 billion, and for the current fiscal year, it is $0.75 on revenues of $6.23 billion [7] - The estimate revisions trend for Xerox was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Office Supplies industry, to which Xerox belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Xerox's stock performance [5]