Recent ODP transcripts
Associated ODP filings
Timothy Perrott | executive |
Gerry Smith | executive |
Diego Scaglione | executive |
Gregory Burns | analyst |
Michael Lasser | analyst |
Good morning, and welcome to the ODP Corporation's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] At the request of the ODP Corporation, today's call is being recorded. I would like to introduce Tim Perrott, Vice President, Investor Relations and Treasurer. Mr. Perrott, you may now begin.
Good morning, and thank you for joining us for the ODP Corporation's second quarter 2024 earnings conference call. and Scaglione, with and our Perrott, CEO; Smith, CFO. Tim Anthony and Executive is I'm Gerry here our This Vice President
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our [Operator Instructions] come Greg of from And will Burns question Sidoti. first
them Then the lastly, customer is going existing having over that of given on couple pipeline there, your pipeline? And a on rolling Was lost? in loss What you could been an end? of related? guess give color then I any announced further solutions. also, delays bit risk could or -- ago? you quarters of customer? couple the And maybe it a the Just there conversion out against convert out confidence around half for issue more the that? a to that customers won maybe customer Some see your there or delay have the ability the pipeline of execution, gives little you at you the the what last Has has been and customer with us been in give the year back of on you of in maybe quarters been couple us enterprise that you just rates has the as that what's questions some
maybe right, on. add and I'll could start then All Greg, Gerry
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initiatives. have as X in about driving we for midterm, the We're the We script. these talked
the a over midterm on Now we're well. term near in growth as over difference long the strategic focused pieces the business confident next, term, the make And across and business. time in we'll we're the
next [Operator will Michael UBS. question coming Instructions] Our of Lasser be from
macro remaining how into that expecting the between challenging If you divide it half? in the shortfall to would competitive is had the landscape, much do more back landscape as intense you're competitive versus so? more you How the the playing well
environment, as well out losses, a as it's as in retailers of conditions. of of there less. my customers are macroeconomic customers is well. BXB But are this of number we our I'll BXC, is buying is softness. don't There's lot our a perspective but seeing This say, seeing would let have a customers trove comment competitive have BXB course I Anthony We current There's less. softness. companies that a buying softness
in said competition than script, Yes, it any fierce working always opportunities. hard is on see have people more fierce, cetera, is Anthony? in but the don't et we we're et trajectory the changing had which past. As it's people reduce cetera, the been spending, I layoffs, their why
hear think, I good Michael, to you. Yes, from
from that been consumer think a combination a perfect delayed trading you customers and down I close product purchases a standpoint, overall. can challenged of it's been think agree longer ticket I a some cycle, storm, has big
it's day. happening every like perfect what experience at all single It's feel this we I So almost storm. But once. a
impact a think and line I this trading top having bottom lot has macro, It's delaying on with purchases, is point, line. Gerry's of the to to all which an purchases. So both the do down
to comparisons year. going margin, of it get like environment the what to gross back half gross gross in the the quarters happen is difficult. couple on erosion the seem the the doesn't get needs on line any is, in last margin significant question your from much And in My of to second margin reverse order more easier because the
Yes.
obviously Project to half. in in back begin the Most actions the So we Core, which have QX. occurred meaningfully cascade more will of
benefit, that the were the in actions a QX, which end completed QX of little the actions through year. gives start in but of us the most by half, of confidence balance have that you'll see bit the accruing We back the to of
improve should the that gross margin. So
back some of should help the to shoots, within a one have line volume the impact fixed stabilizing. with of Gerry's top that some pull has that top forward. point, gross chain. which we should occurs just that deleveraging the an to margins down costs going our do of into bring he higher That The coming through green announced, supply of effect the gross has it line lot think on margins. And I obviously
sales what of is, have and couple laptops? AI-enabled months been the started final what last the of to category My some your you have in question category? seen been in improve laptop has percentage There's that indications laptop
think AI. AI, demand coming the seen is the what we've the is from I
that refresh your As to are I you than cycle over of meaningful laptops pillar. traditional be versus we've seen. what's And think what most know, the to to our provide next desktop even going occurring X XX going months, more sales it's
be in sales. PC as it to going category it's So mostly the laptop relates to
add question. What quarter? second the seen If a holiday that the one so continuation back-to-school Has it of experienced I been could in in season? you more the trends have you early far
early the staging earlier. really early is prepared We're We've in Back-to-school now. the flights. right
higher time assortment and Dormify, a first school ready. list, We're we're reach. our standpoint, that our supply leveraging certain and accessories, We're ed, outfitting with teacher is the launched So our which that. stores leveraging we've dorm showcasing room from the
as that in It's flights, like feel of as from back-to-school seeing we and have this we're as breadth we by But think customers really products we stand depth year So well product and that environment. We inventory we an where and days saw the services our we're early -- where Michael, can we're year well. and the the service. very provide positioned. competitive that last saw encouraged positioned we're standpoint well we we but a
now Gerry back that today. remarks. the ODP to concludes will for call the CEO, Smith's And turn Corporation's Q&A I session closing
thank for today. Well, call you joining our
things. to Just a QX performance Obviously, want couple recognize in clearly reiterate was this that. unacceptable. We
we did taken on Project our Core cost the in we've get action to Second, position back line.
We culture. cost continue and low walk to our our model drive
QX, initiatives. off Those are we is We're those. QX. as traction structural about those Third Big to talked that improve in we're and Those kicked going drive early were X around to starting profitability. late our see well initiatives help growth as to continue
buyback share moving very going fully this plan and Business hard very, in the with in forward forward from the the we're So we to velocity our green And And make are perspective, going lots see we from XXXX. we're lastly, step we ODP that a have we get going strategic reviews XXXX. a good And huge shoots number a And of work our to a opportunity we perspective. board across growth close difference a we're -- business. business, exit with of to as a business, within talked again, on Veyer hard implement our about of number with 'XX. changers. we pleased to lastly, that going Solution changing. Super we're on the almost QX, for trajectory to this potential And do right think that's that. sided forward allocation. to have last capital trajectory work business their will doubling year And from huge traction a business the support in That morning and
so for level And back the into of you the call and lot and this work accretive get and have acceptable board do on again. that we performance speak we're across board, we'll morning, a to business the and courses the us we joining for to know change is all a marketplace. Thank
your today's concludes call. Thank participation. you for This
disconnect. now may You
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