Citi Comments on OfficeMax's "Weaker than Expected" 1Q Results

Citi is commenting on OfficeMax's (NYSE: OMX) “weaker than expected 1Q results,” which “were partially driven by sales execution issues at the store level, as well as losses of accounts in delivery (without offsetting new contracts).”

“Similar to SPLS commentary, management noted that they had seen some push back to pricing increases and had run a more promotional calendar (to drive traffic impaired by negative weather impact),” Citi writes. “In 1Q, despite significant discounting activity (GM% declined roughly 90bps y/y), sales trends remained weak both in contract (a ~3.9% decline y/y) and in retail (a 1.8% decline y/y).”

OfficeMax closed Thursday at $8.19.