OfficeMax Back in Black
Rebounding from a $25.1 million net loss for the first quarter of fiscal 2006, Itasca, IL-based OfficeMax reported net income of $58.6 million for the first quarter of fiscal 2007. For the three months ended March 31, total revenue increased slightly, 0.5%, to $2.43 billion from $2.42 billion.
Sales within the contract segment, which includes the catalog and Internet, increased nearly 3%, to $1.3 billion. Retail sales fell 2%, to $1.2 billion, but the company had 73 fewer stores open at the end of this first quarter than it had 12 months prior. Same-store sales rose 2%.
“Our results for the first quarter showed moderate improvement,” CEO Sam Duncan said in a statement. “In our contract segment, we are addressing lower-margin sales, which contributed to operating income margin contraction. In our retail segment we are pleased with continued gross margin expansion, which delivered operating income margin improvement.”
1Q Sales Up at United Stationers
First-quarter sales at Deerfield, IL-based office supplies merchant United Stationers increased 4%, to a record $1.2 billion for the three months ended March 31. Sales of janitorial/sanitation supplies and cut sheet paper were the strongest contributors to growth. Net income rose 51%, to $27.2 million up from $18.0 million.
Cabela’s Bottom Line Drops 22%
First-quarter direct sales for outdoor sporting gear merchant Cabela’s increased 4%, to $237.9 million for the three months ended March 31. The Sidney, NE-based cataloger/retailer saw its total first-quarter revenue rise 14%, to $462.1 million. But net income plunged 22%, to $7.1 million from $9.1 million for the first quarter of 2006.
“As discussed last quarter, we expected our first quarter to be impacted by additional fixed costs, such as increased depreciation, timing differences in recording our incentive compensation expense, incremental pre-opening costs related to our Hazelwood, MO, store, and increased interest expense,” CEO Dennis Highby said in a release. “These costs impacted our first-quarter results as planned, and we remain on track to achieve our long-term top and bottom line mid-teens growth rate targets for fiscal 2007.”
Big Rise in Sales for Interline Brands
First-quarter sales for Interline Brands, a Jacksonville, FL-based supplier of maintenance, repair, and operations (MRO) products, soared 31.5%, to $295.4 million for the three months ended March 30. Net income increased 12%, to $9.4 million. Average organic daily sales grew 3.2%.