The ODP Corp ( ODP ). shares are trading lower on Wednesday.

The company reported fourth-quarter adjusted earnings per share of 66 cents, missing the street view of 80 cents. Quarterly sales of $1.624 billion (down 10% year over year) outpaced the analyst consensus estimate of $1.610 billion.

Lower sales in its consumer division, Office Depot, was primarily due to lower retail and online consumer traffic and lower average order volumes, as well as 47 fewer stores in service compared to last year related to planned store closures.

Fourth quarter 2024 adjusted operating income was $32 million, down compared to $57 million in the fourth quarter of 2023.

“Our performance in 2024 was impacted by weak macroeconomic trends, subdued business and consumer activity, and effects from severe weather in the second half of the year,” said CEO Gerry Smith.

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ODP Business Solutions Division’s operating income margin was 3%, down 70 basis points compared to the same period last year, while Office Depot Division’s operating income margin was 4%, down 100 basis points.

“Looking ahead to 2025, we plan to prioritize capital allocation toward our core business over share repurchases, focusing on high-return B2B growth opportunities that we believe will drive sustainable, long-term value for our shareholders,” said Adam Haggard, senior vice president and co-chief financial officer of ODP Corporation ( ODP ).

Adjusted Free Cash Flow was $(57) million in the fourth quarter, compared to $48 million in the prior year period.

The company exited the quarter with cash and equivalents worth $166 million.

Long-term debt (net of current maturities) expanded to $270 million from $165 million in the year-ago period.

ODP Price Action: ODP Corporation ( ODP ) shares are trading lower by 21.21% to $15.12 at publication Wednesday.

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Courtesy: ODP Corporation ( ODP )