Financial Reports: Henry Schein, Office Depot and PC Mall

Down Quarter, Up Year for Henry Schein
Medical, dental, and veterinary supplier Henry Schein saw its fourth-quarter sales slip 7.5%, to $1.6 billion. For the fiscal year ended Dec. 27, the Melville, NY-based merchant’s net sales rose 8.3%, to $6.4 billion.

Henry Schein’s net income for the fourth quarter fell 13%, to $56.9 million. But for the fiscal year, its net income increased 13%, to $243.1 million.

Office Depot Posts Net Loss Of $1.54 Billion
Fourth-quarter sales for Office Depot decreased 15%, to $3.3 billion for the period ended Dec. 27. The office supplies merchant reported a net loss of $1.54 billion, compared to net income of $19 million for the same period in 2007. For the fiscal year, the company reported a net loss of $1.47 billion, compared to net income of $395.6 million last year. Sales for the fiscal year decreased 7%, to $14.5 billion.

Fourth-quarter sales in Office Depot’s North America Business Solutions Division, which includes catalogs, sank 14%, to $920 million, “driven by severe spending cuts by the division’s customers,” according to a company release. The North American Retail Division’s sales fell 17%, to $1.4 billion, with same-store sales down 14% for the quarter. Sales in the International Division decreased 15%, to $963 million.

PC Mall’s 2008 Sales Rise 9%
Computer reseller PC Mall reported preliminary fourth-quarter net sales of $334.3 million, a year-over-year decrease of 18%. For the fiscal year ended Dec. 31, 2008, the Torrance, CA-based merchant’s consolidated net sales increased 9%, to $1.32 billion, up from $1.21 billion last year.

Fourth-quarter net income sank 78%, to $984,000, from $4.6 million. For the fiscal year, PC Mall’s net income decreased 23%, to $9.6 million, from $12.4 million.

PC Mall chairman/CEO Frank Khulusi said in a release: “I am pleased with our operating performance in the fourth quarter in light of the economic weakness that is well known and widespread. I am proud of the way that our team executed in this challenging environment, enabling us to deliver increased gross margins and tighter operating expense controls. We continue to believe that despite the economic uncertainties, our dedicated and talented employee base, world class vendor partners and solid customer base position us well in the current environment and going forward.”

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