Bulletin
Investor Alert

Market Pulse Archives

June 21, 2022, 8:23 a.m. EDT

ODP Corp. will hang on to its consumer business under common ownership

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    ODP Corp. (ODP)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Tonya Garcia

ODP Corp. /zigman2/quotes/204015456/composite ODP -3.41% said Tuesday that it will not sell its consumer business after all, and will instead hold on to it under common ownership with its other business units. ODP recently completed the transformation to a holding company structure with four business units: Office Depot LLC, which operates 1,000 Office Depot and OfficeMax retail locations and an e-commerce arm; ODP Business Solutions LLC; Veyer LLC, a supply chain, distribution, procurement and global sourcing business; and Varis LLC, a B2B digital platform technology business. Following a board review, ODP has canceled the divestiture of the consumer business, and has decided not to resume the potential public-company separation. Rather, it will keep all the businesses under common ownership due to current market conditions. "[T]he completion of our internal reorganization will make such a potential separation substantially simpler should the Company determine to resume the separation process following a change of market conditions in the future," said Board Chair Joseph Vassalluzzo in a statement. For the second quarter, ODP expects consolidated revenue of about $2 billion and full-year results in line with last year. The FactSet consensus is for second-quarter revenue of $2.039 billion. For the full-year, the FactSet consensus is for revenue of $8.414 billion, down slightly from $8.465 billion in 2021. ODP stock slipped 1.8% in Tuesday premarket trading, and the stock is down 10.9% for the year to date. The broader S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.40% has slumped nearly 23%.

/zigman2/quotes/204015456/composite
US : U.S.: Nasdaq
$ 37.35
-1.32 -3.41%
Volume: 515,173
Aug. 15, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$1.88 billion
Rev. per Employee
$324,346
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,297.14
+16.99 +0.40%
Volume: 2.22B
Aug. 15, 2022 5:46p
loading...

Get news alerts on ODP Corp. and S&P 500 Index — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.