ODP Corp (ODP) 2025 Q1 法說會逐字稿

Good morning and welcome to the ODP Corporation's first quarter 2025 earnings conference call. (Operator Instructions) At the request of the ODP corporation, today's call is being recorded. I would now like to introduce Tim Perrott, Vice President of Investor relations and treasurer. Mr. Perot, you may now begin.

早安，歡迎參加 ODP 公司 2025 年第一季財報電話會議。（操作員指示）應 ODP 公司的要求，今天的通話正在錄音。現在我想介紹投資者關係副總裁兼財務主管 Tim Perrott。佩羅先生，現在可以開始了。

Good morning and thank you for joining us for the ODP Corporation's first quarter 2025 earnings conference call. This is Tim Perrott, and I'm here with Gerry Smith, our CEO. Also joining us on the call today are Max Hood and Adam Haggard, our Co-CFOs.

早安，感謝您參加 ODP 公司 2025 年第一季財報電話會議。我是蒂姆·佩羅特 (Tim Perrott)，和我們一起在場的還有我們的執行長格里·史密斯 (Gerry Smith)。今天參加電話會議的還有我們的共同財務長 Max Hood 和 Adam Haggard。

During today's call, Gerry will provide an update on the business, focusing much of his commentary on our results and accomplishments for the first quarter of 2025, including the progress we are making on our B2B pivot and our expansion into higher-growth industry segments.

在今天的電話會議中，Gerry 將介紹業務的最新情況，重點評論我們 2025 年第一季的業績和成就，包括我們在 B2B 轉型方面取得的進展以及我們向高成長產業領域的擴張。

After Gerry's commentary, Max will then review the company's results for the quarter and year, including highlights of our divisional performance, followed by Adam, who will highlight our balance sheet and comment on our go-forward plans.

在 Gerry 的評論之後，Max 將回顧公司本季和年度的業績，包括我們部門業績的亮點，然後是 Adam，他將重點介紹我們的資產負債表並對我們的未來計劃發表評論。

Following our comments, we will open up the line for your questions. Before we begin, I need to inform you that certain comments made on this call include forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the company's current expectations concerning future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially. A detailed discussion of these risks and uncertainties are contained in the company's filings with the US Securities and Exchange Commission.

根據我們的評論，我們將開放熱線來回答您的問題。在我們開始之前，我需要通知您，本次電話會議中發表的某些評論包括前瞻性陳述，這些陳述受 1995 年《私人證券訴訟改革法案》安全港條款的約束。這些前瞻性陳述反映了公司目前對未來事件的預期，並受到可能導致實際結果大不相同的多種風險和不確定因素的影響。有關這些風險和不確定性的詳細討論包含在公司向美國證券交易委員會提交的文件中。

During the call, we will use some non-GAAP financial measures as we describe business performance. The SEC filings as well as our earnings press release, presentation slides that accompany today's comments and reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are all available on our website at investor.theodpcorp.com.

在電話會議中，我們將使用一些非公認會計準則財務指標來描述業務績效。SEC 文件以及我們的收益新聞稿、伴隨今天的評論的演示幻燈片以及非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳都可以在我們的網站 investor.theodpcorp.com 上找到。

Today's call and slide presentation is being simulcast on our website and will be archived there for at least 1 year. I'll now turn the call over to Gerry Smith. Gerry?

今天的電話會議和幻燈片演示將在我們的網站上同步播出，並將在那裡存檔至少一年。現在我將把電話轉給格里史密斯。格里？

Thank you, Tim, and good morning, everyone. I'd like to start out by thanking all of you for joining our call today to review ODP's results and accomplishments for the first quarter of 2025. We appreciate your continued interest and support as we execute on our strategy to transform our business and position ODP for a long-term growth.

謝謝你，提姆，大家早安。首先，我要感謝大家今天參加我們的電話會議，回顧 ODP 在 2025 年第一季的成果和成就。感謝您在我們實施業務轉型策略、實現 ODP 長期成長的過程中給予的持續關注和支持。

This morning I'll provide an overview of our performance for the quarter and share updates on the progress we're making with our Optimized for Growth plan and our B2B pivot. Both initiatives are helping us adapt to evolving market conditions, improve operational efficiency, and position the company for future topline opportunities.

今天上午，我將概述我們本季的業績，並分享我們在優化成長計畫和 B2B 轉型方面取得的進展。這兩項措施均有助於我們適應不斷變化的市場條件、提高營運效率，並為公司未來的營收機會做好準備。

As I walk through our performance, I want to focus on a few key themes that reflect our progress and provide context for our results as shown on slide 4 of the presentation. First, our strategies focus on leveraging our core strengths to accelerate our B2B pivot and enhance our position in our traditional enterprise market segment while expanding into new higher growth segments like hospitality and supply chain as a service.

當我回顧我們的表現時，我想專注於幾個反映我們進展的關鍵主題，並為我們的成果提供背景，如簡報的第 4 張投影片所示。首先，我們的策略重點是利用我們的核心優勢來加速我們的 B2B 轉型並增強我們在傳統企業市場領域的地位，同時擴展到飯店和供應鏈即服務等新的更高成長領域。

Our supply chain assets, distribution capabilities, and enterprise customer base set us apart in the industry and provide a strong foundation for future growth in both our traditional segments and beyond. As a key element to our strategy, we are executing our Optimized for Growth restructuring plan that realigns our organizational structure, product offerings, and go to market strategies to accelerate our B2B pivot and expand into new enterprise segments. This plan also helps us reduce fixed costs, increase operational flexibility, while reducing future reliance on our retail business.

我們的供應鏈資產、分銷能力和企業客戶群使我們在業界脫穎而出，並為我們在傳統領域及其他領域未來的成長奠定了堅實的基礎。作為我們策略的關鍵要素，我們正在執行「優化成長」重組計劃，該計劃將重新調整我們的組織結構、產品供應和市場策略，以加速我們的 B2B 轉型並擴展到新的企業領域。該計劃還幫助我們降低固定成本，提高營運靈活性，同時減少未來對零售業務的依賴。

Second, strong execution of our strategy has led to early signs of traction in key areas of the business. In the quarter, we improved our overall year over year performance trends and generate significantly higher adjusted free cash flow, placing us in a better position as we move throughout the year and execute our strategy.

其次，我們策略的強大執行已使業務的關鍵領域出現了早期的牽引跡象。在本季度，我們改善了整體同比業績趨勢，並產生了顯著更高的調整後自由現金流，使我們在全年發展和執行策略時處於更有利的位置。

Additionally, while yet to be notable in our results, we're making progress in expanding into new markets beyond traditional office supplies. And finally, we have a solid balance sheet and available liquidity and a business model that generates free cash flow, all which supports our strategy and provides flexibility for future growth.

此外，雖然我們的業績還不顯著，但我們在拓展傳統辦公用品以外的新市場方面正在取得進展。最後，我們擁有穩健的資產負債表和可用的流動性以及產生自由現金流的商業模式，所有這些都支持我們的策略並為未來的成長提供靈活性。

Let me now expand on these points and provide more detail on a performance for the quarter, starting with the slide 5 of the presentation. Overall, we're off to an encouraging start to the year with our overall performance reflecting positive momentum and improving year over year comparable trends in the first quarter.

現在，讓我詳細闡述這些要點，並提供本季業績的更多細節，從簡報的第 5 張投影片開始。總體而言，我們今年的開局令人鼓舞，第一季我們的整體業績反映出積極的勢頭，並且同比趨勢有所改善。

Our focus on core operations and the execution of our strategy help us deliver a sequential improvement in adjusted EBITDA and generate a meaningful increase in adjusted free cash flow compared to last year. Specifically, on an adjusted basis, we drove $76 million in EBITDA and $45 million in free cash flow.

我們對核心業務的關注和策略的執行幫助我們實現了調整後 EBITDA 的連續改善，並且與去年相比，調整後自由現金流實現了顯著增長。具體來說，經調整後，我們的 EBITDA 為 7,600 萬美元，自由現金流為 4,500 萬美元。

Our performance was led by our consumer division, Office Depot, which delivered better topline trends compared to last year while delivering higher margins on a sequential basis. This helped drive stronger cash flow generation driven by targeted consumer initiatives supported by our Optimized for Growth plan.

我們的業績由消費品部門 Office Depot 引領，與去年相比，該部門的營收趨勢更好，利潤率也比去年更高。這有助於推動更強勁的現金流產生，這得益於我們「優化成長」計畫所支持的目標消費者計畫。

While store closures impacted our total topline results, we're happy to report that our comparable store trends improved 300 basis points from the fourth quarter of 2024 and improved 500 basis points from the same period last year.

雖然門市關閉影響了我們的整體營業收入，但我們很高興地報告，我們的可比門市趨勢較 2024 年第四季提高了 300 個基點，較去年同期提高了 500 個基點。

Average order volumes are up over last year. Our loyalty program enrollments are climbing, and categories like paper are performing better. This performance trend accelerated in the month of April, give us confidence in our momentum as we move into the next quarter and throughout the balance of the year.

平均訂單量比去年增加。我們的忠誠度計畫註冊人數正在攀升，紙張等類別的表現也越來越好。這一業績趨勢在四月份加速，讓我們對進入下一季以及全年的勢頭充滿信心。

In our B2B business, top line trends were about the same as last year, reflecting the continued soft market demand and impact of comping over one large customer loss from mid last year. I would also note that some of our recently announced new business contracts are still in the onboarding phase and are not yet running at full speed. That said, we're making progress in several areas.

在我們的 B2B 業務中，營收趨勢與去年大致相同，反映了持續疲軟的市場需求以及去年年中一位大客戶流失的影響。我還要指出的是，我們最近宣布的一些新業務合約仍處於入職階段，尚未全速運行。也就是說，我們在多個領域取得了進展。

We're continuing to win new business and we're making progress in our expansion into the hospitality industry. On the new business front, we recently added CoreTrust, a large group purchasing collective with over 3,500 enterprise members to our portfolio.

我們正在繼續贏得新業務，並且在向酒店業擴張方面正在取得進展。在新業務方面，我們最近將 CoreTrust（一家擁有超過 3,500 家企業成員的大型集團採購集體）添加到我們的投資組合中。

We're actively onboarding CoreTrust and other large new business wins, which we expect will add to our performance in the second half of the year. Additionally, we expect that the progress we are making in the hospitality sector will begin to more meaningfully contribute to our results in the second half of the year, helping us change our trajectory.

我們正在積極爭取 CoreTrust 和其他大型新業務，預計這將有助於提升我們下半年的業績。此外，我們預計，我們在酒店業的進展將在下半年開始對我們的業績產生更有意義的貢獻，幫助我們改變發展軌跡。

In all, given the new business we've added, our expected progress in the pace of onboarding, and our launch in the hospitality sector, we have growing confidence that our results will improve in the second half of the year.

總而言之，鑑於我們增加的新業務、我們預期的入職速度進步以及我們在酒店業的推出，我們越來越有信心我們的業績將在下半年改善。

In our supply chain business Veyer, we continue to deliver strong results, achieving over 85% year-over-year revenue growth from third-party customers and adding significant new accounts to its portfolio. This performance highlights the value of our supply chain capabilities and the growing demand for our services.

在我們的供應鏈業務 Veyer 中，我們繼續取得強勁的業績，來自第三方客戶的營收年增超過 85%，並為其產品組合增加了大量新客戶。這項業績凸顯了我們的供應鏈能力的價值以及對我們服務日益增長的需求。

And finally, from a cash management standpoint, our team continues to effectively manage the business and inventory to maximize cash flow. Cash conversion improved significantly in the quarter, helping us generate $45 million in adjusted free cash flow, which is more than double the free cash flow we generated in the same period last year. I'd like to thank my team for their dedication and focus on cash management.

最後，從現金管理的角度來看，我們的團隊繼續有效地管理業務和庫存，以最大化現金流。本季現金轉換率大幅提高，幫助我們產生了 4,500 萬美元的調整後自由現金流，是去年同期自由現金流的兩倍多。我要感謝我的團隊對現金管理的奉獻和關注。

Turning to slide 6, I'd like to provide an update on our progress in the hospitality market. Three months ago, we announced a strategic partnership with one of the world's largest hotel management organizations, a company preferred provider for operating supplies and equipment. While we're at the early stage of our deployment, we made progress in expanding into this growing $16 billion market segment. We're excited about this opportunity as it aligns perfectly with our core strengths in supply chain and distribution and represents an important step in our efforts to diversify beyond office supplies.

翻到第 6 張投影片，我想介紹一下我們在飯店市場的進展。三個月前，我們宣布與全球最大的酒店管理機構之一建立策略合作夥伴關係，該機構是該公司營運用品和設備的首選供應商。雖然我們還處於部署的早期階段，但我們在擴展這個不斷增長的 160 億美元細分市場方面取得了進展。我們對這個機會感到非常興奮，因為它與我們在供應鏈和分銷方面的核心優勢完美契合，並且代表著我們努力實現辦公用品以外的多元化的重要一步。

Our first partnership covers approximately 15,000 potential customer locations within this hotel management group, and we believe it will serve as a foundation for future growth in this segment and other related industries.

我們的首個合作關係涵蓋了該酒店管理集團內約 15,000 個潛在客戶地點，我們相信這將為該領域和其他相關行業的未來成長奠定基礎。

Our key accomplishments include establishing agreements with leading suppliers like Sobel Westex and Hunter Amenities, giving us access to a supply of premium hospitality products such as linens, towels, and personal care items.

我們的主要成就包括與 Sobel Westex 和 Hunter Facilities 等領先供應商建立協議，使我們能夠獲得優質飯店產品（如床單、毛巾和個人護理用品）的供應。

Next, building up inventory to meet anticipated demand. While inventory build and sourcing are taking a bit longer than we anticipated, we're gaining momentum in building our position to meet future demand.

接下來，建立庫存以滿足預期需求。雖然庫存建立和採購所花費的時間比我們預期的要長一些，但我們正在加緊建立我們的地位以滿足未來的需求。

Next, adding sales talent with deep hospitality experience to drive growth. Additionally, engaging with potential customers and franchisees whose feedback regarding our services has been positive and encouraging.

接下來，增加具有豐富酒店經驗的銷售人才來推動成長。此外，我們與潛在客戶和特許經營商的接觸對我們的服務給予了積極和令人鼓舞的回饋。

Next, forming a relationship and signing a supply agreement with a key industry player that we believe will accelerate discussions with other hotel management companies. And lastly, we're also in ongoing discussions with several other key market participants to develop future relationships.

接下來，與關鍵產業參與者建立關係並簽署供應協議，我們相信這將加速與其他飯店管理公司的討論。最後，我們也正在與其他幾位主要市場參與者進行討論，以發展未來的關係。

While we are still in the early stages of our launch and have more work ahead, these efforts are laying the groundwork for ODP to deliver meaningful growth in this segment. We expect these initiatives to begin contributing more significantly to our results beginning in the second half of the year.

雖然我們仍處於發布的早期階段並且還有更多的工作要做，但這些努力為 ODP 在這一領域實現有意義的成長奠定了基礎。我們預計這些舉措將從今年下半年開始對我們的業績做出更大貢獻。

And finally, I want to highlight the progress we're making with our Optimized for Growth restructuring plan. This is shown on slide 7. As a reminder, this initiative focuses on capitalizing on our core strengths to accelerate growth in the B2B distribution and third-party logistics segments while reducing our fixed-cost infrastructure and limiting future retail exposure and associated liabilities.

最後，我想強調我們在優化成長重組計劃方面取得的進展。這在第 7 張投影片上顯示。提醒一下，該計劃的重點是利用我們的核心優勢來加速 B2B 分銷和第三方物流領域的成長，同時降低我們的固定成本基礎設施並限制未來的零售風險和相關負債。

The plan realigns our organizational structure, product offerings, and go-to-market strategies to target high-growth opportunities in the B2B market while also expanding into new enterprise segments, including hospitality, healthcare, and adjacent sectors.

該計劃重新調整了我們的組織結構、產品供應和市場進入策略，以瞄準 B2B 市場中的高成長機會，同時擴展到新的企業領域，包括酒店、醫療保健和鄰近行業。

We made significant progress in the quarter, executing efficiency measures targeted at reducing fixed costs. We closed nine retail stores under the program and eliminated areas of corporate support structure. The progress we are making is helping us redirect resources and add flexibility in our operations in both our consumer and B2B divisions.

我們在本季取得了重大進展，實施了旨在降低固定成本的效率措施。我們根據該計劃關閉了九家零售店，並取消了企業支援結構領域。我們所取得的進展正在幫助我們重新分配資源，並增加消費者和 B2B 部門營運的靈活性。

Before I turn over to Max, I'd like to reiterate that we are off to a better start to the year, driving improved overall trends and generating a significant increase in adjusted free cash flow. Our consumer business has improved, and we are anticipating continued momentum in the months ahead.

在交給 Max 之前，我想重申一下，我們今年的開局更好，推動了整體趨勢的改善，並實現了調整後自由現金流的顯著增長。我們的消費者業務已經改善，我們預計未來幾個月將繼續保持這一勢頭。

In our B2B business, we are winning new business and anticipating better trends in the second half of the year as we onboard new customers and drive more meaningful results in the hospitality segments. We will continue to focus on the core, driving our strategy and initiatives, remaining committed to generating value for our shareholders. I also note that we are evaluating the tariff situation that has been evolving over the past few months.

在我們的 B2B 業務中，我們正在贏得新業務，並預計下半年趨勢會更好，因為我們將吸收新客戶並在酒店領域取得更有意義的成果。我們將繼續專注於核心，推動我們的策略和計劃，繼續致力於為股東創造價值。我還注意到，我們正在評估過去幾個月來關稅狀況的變化。

While we're not immune from potential impacts, our team has been working closely with our vendors, evaluating strategies. We've taken previous actions we believe will help us mitigate potential impacts. With that, I'll turn it over to Max.

雖然我們無法免受潛在影響，但我們的團隊一直與供應商密切合作，評估策略。我們已採取先前的行動，相信這些行動將有助於我們減輕潛在的影響。說完這些，我就把麥克風交給馬克斯。

Thank you, Gerry, and good morning to everyone on the call. I'm Max Hood, Co-CFO. I would like to cover the specifics of our results for the first quarter on slide 9. Please note that our results, as presented, are for continuing operations.

謝謝你，格里，電話裡的各位早安。我是聯合財務長 Max Hood。我想在第 9 張投影片上介紹我們第一季業績的具體情況。請注意，我們所呈現的結果是關於持續經營的。

We generated total revenue of $1.7 billion in the quarter, reflecting a 9% decline compared to the first quarter of last year. However, this result marks an improvement in the year-over-year trend compared to prior quarters.

本季我們的總營收為 17 億美元，與去年第一季相比下降了 9%。不過，與前幾季相比，這一結果標誌著年比趨勢有所改善。

The decline in sales was primarily driven by several factors, including 46 fewer stores in operation, reduced retail and online consumer traffic, and lower sales within ODP Business Solutions.

銷售額下降主要是由於多種因素造成的，包括營運門市減少 46 家、零售和線上消費者流量減少以及 ODP 商業解決方案銷售額下降。

Our GAAP results in the quarter included $86 million of charges, primarily related to $48 million of restructuring expenses associated with our Optimized for Growth plan and $30 million in non-cash asset impairments of operating lease right-of-use assets associated with our retail store locations and distribution centers.

我們本季的 GAAP 業績包括 8,600 萬美元的費用，主要與我們的優化成長計畫相關的 4,800 萬美元重組費用以及與我們的零售店和配送中心相關的經營租賃使用權資產的 3,000 萬美元非現金資產減損有關。

The balance of the charges in the quarter was related to the impairment of certain software and other store-related fixed assets. Notably, the initial restructuring charges associated with the Optimized for Growth plan included $36 million of severance costs that we are estimating to incur over the life of the plan.

本季費用餘額與某些軟體和其他商店相關固定資產的減損有關。值得注意的是，與「優化成長」計畫相關的初始重組費用包括 3,600 萬美元的遣散費，我們估計這筆費用將在該計畫的整個期間產生。

Considering these charges, GAAP operating loss in the quarter was $32 million versus GAAP operating income of $41 million in the prior year period. Excluding these charges, adjusted operating income for the first quarter was $54 million compared to $66 million in last year's first quarter. Unallocated corporate expenses were $20 million in Q1.

考慮到這些費用，本季的 GAAP 營業虧損為 3,200 萬美元，而去年同期的 GAAP 營業收入為 4,100 萬美元。不計這些費用，第一季調整後的營業收入為 5,400 萬美元，而去年第一季為 6,600 萬美元。第一季未分配的公司支出為 2,000 萬美元。

Adjusted EBITDA was $76 million in the quarter compared to $91 million in last year's first quarter. This includes adjusted depreciation and amortization expense of $25 million in the first quarters of 2025 and 2024.

本季調整後的 EBITDA 為 7,600 萬美元，而去年第一季為 9,100 萬美元。其中包括 2025 年和 2024 年第一季 2500 萬美元的調整後折舊和攤提費用。

Excluding the after-tax impact from the items mentioned earlier, adjusted net income from continuing operations for the first quarter was $32 million or $1.06 per diluted share, compared to $50 million or $1.31 per diluted share in the prior year period

不計入前述項目的稅後影響，第一季調整後持續經營淨利為 3,200 萬美元，即每股 1.06 美元，而去年同期為 5,000 萬美元，即每股 1.31 美元

Now turning to our strong cash flow generation in the quarter. Operating cash flow from continuing operations in the quarter was $57 million, which included $10 million in restructuring spend. This compared to cash provided by operating activities of continuing operations of $44 million, including $4 million in restructuring spend in the same period last year.

現在來談談本季我們強勁的現金流產生。本季持續經營業務的營運現金流為 5,700 萬美元，其中包括 1,000 萬美元的重組支出。相較之下，持續經營業務的經營活動所提供的現金為 4,400 萬美元，其中包括去年同期 400 萬美元的重組支出。

The year-over-year increase in operating cash flow was a result of our operational discipline and prudent working capital management, converting recent inventory investments into cash as we indicated last quarter. This led to strong cash conversion in the quarter.

經營現金流年增是由於我們的經營紀律和審慎的營運資本管理，正如我們上個季度所指出的，將近期的庫存投資轉化為現金。這導致本季現金轉換強勁。

Capital expenditures were $21 million in the first quarter of 2025 versus $31 million in the prior year period, as we continued to prioritize capital investments toward B2B growth opportunities, supporting our supply chain operations, distribution network, and digital capabilities. Adjusted free cash flow in the quarter was $45 million, a significant increase compared to adjusted free cash flow of $17 million generated in the same period last year.

2025 年第一季的資本支出為 2,100 萬美元，而去年同期為 3,100 萬美元，因為我們繼續優先考慮對 B2B 成長機會的資本投資，支持我們的供應鏈營運、分銷網絡和數位化能力。本季調整後的自由現金流為 4,500 萬美元，與去年同期 1,700 萬美元的調整後自由現金流相比有大幅成長。

Now turning to our consumer business, Office Depot, as shown on slide 10. Office Depot is off to a strong start to the year, with year-over-year top-line trends and margins improving in the quarter as targeted profitable sales strategies gain traction. Reported sales were $838 million in the quarter, down 11% compared to the prior year. This result represented an improvement in the year-over-year trend we reported in the same period last year.

現在轉向我們的消費者業務 Office Depot，如幻燈片 10 所示。Office Depot 今年開局表現強勁，隨著有針對性的獲利銷售策略獲得青睞，本季營收趨勢和利潤率均較去年同期有所改善。本季報告銷售額為 8.38 億美元，較上年下降 11%。這一結果比我們去年同期報告的同比趨勢有所改善。

Overall sales were impacted by 46 fewer retail locations in service associated with planned store closures, as well as lower traffic trends and online sales, partially offset by higher average order volumes and the positive impact of targeted sales promotions. In total, we closed 12 retail stores in the quarter and had 857 stores at quarter-end.

整體銷售額受到計劃關閉門市導致在售零售點減少 46 個以及客流量和線上銷售額下降的影響，但平均訂單量增加和有針對性的促銷活動的正面影響部分抵消了這些影響。總體而言，我們在本季關閉了 12 家零售店，季末共有 857 家零售店。

Our targeted sales initiatives are helping to drive a significant improvement in comparable store sales metrics. On a same-store basis, sales were down 5% year-over-year, representing a 500 basis point improvement in our same-store comp over last year's first quarter.

我們有針對性的銷售措施有助於推動同店銷售指標的顯著改善。以同店計算，銷售額年減 5%，與去年第一季相比，同店銷售額提高了 500 個基點。

From an operational standpoint, operating income for the quarter was $45 million. On a percentage of revenue basis, this result represented a sequential increase in margins as our sales mix and targeted initiatives helped to partially offset the impact of lower revenues.

從營運角度來看，本季的營運收入為 4,500 萬美元。以收入百分比計算，這一結果表明利潤率連續增長，因為我們的銷售組合和有針對性的舉措有助於部分抵消收入下降的影響。

On a year-over-year basis, operating margins were flat. Moving forward, we will continue to execute upon our profitable sales initiatives in our retail business, balancing our pricing and promotion strategy with demand elasticity. We are excited about our progress, and as Jerry mentioned, our efforts have continued to gain momentum as we entered the second quarter.

與去年同期相比，營業利潤率持平。展望未來，我們將繼續在零售業務中執行獲利銷售計劃，以平衡定價和促銷策略與需求彈性。我們對我們的進展感到非常興奮，正如傑瑞所提到的，進入第二季後，我們的努力繼續獲得動力。

We will also continue executing our Optimized for Growth plan that will target efficiency gains across the organization and help us lower fixed costs.

我們還將繼續執行「優化成長」計劃，該計劃旨在提高整個組織的效率並幫助我們降低固定成本。

Now turning to ODP Business Solutions, as shown on slide 11. Demand remained soft during the quarter, consistent with trends in the same period last year, as cautious business conditions and restricted enterprise spending budgets persisted.

現在轉向 ODP 商業解決方案，如投影片 11 所示。由於謹慎的商業環境和受限的企業支出預算持續存在，本季需求依然疲軟，與去年同期的趨勢一致。

Reported revenue was $852 million, down 8% year-over-year, but showing slight improvement compared to the trend in the fourth quarter of last year. Results were impacted by weaker enterprise spending and the lingering effects of a large customer loss mid-last year. However, we expect to comp over this customer loss by next quarter, which should help improve trends.

報告收入為 8.52 億美元，年減 8%，但與去年第四季的趨勢相比略有改善。企業支出減弱以及去年年中大量客戶流失的持續影響對業績產生了影響。不過，我們預計下個季度將彌補這一客戶損失，這將有助於改善趨勢。

Furthermore, while the onboarding of certain recent new customer wins has been slower than anticipated, progress is being made. And we expect these contracts to contribute more meaningfully to future quarters.

此外，雖然最近贏得某些新客戶的速度比預期的要慢，但正在取得進展。我們預計這些合約將對未來幾季做出更有意義的貢獻。

Regarding new business, we are executing initiatives to convert our strong new business pipeline into revenue to help us regain top-line traction. We're initiating service for one of the largest contracts in company history as we previously announced, and are winning key new contracts, including our agreement with CoreTrust, and over 3,500 business member purchasing collective serving major industries in manufacturing, retail, hospitality, and finance.

關於新業務，我們正在採取措施將強大的新業務管道轉化為收入，以幫助我們重新獲得營收成長動力。正如我們之前宣布的，我們正在啟動公司歷史上最大的合同之一的服務，並且正在贏得重要的新合同，包括與 CoreTrust 的協議，以及為製造業、零售業、酒店業和金融業等主要行業提供服務的 3,500 多家企業成員採購集體。

In all, when you look at the past three quarters, we have won contracts that represent over $500 million in annual spend when fully implemented. Only a portion of this is currently onboarded. But as we progress, these contracts should help improve the trends beginning in the second half of the year.

總而言之，回顧過去三個季度，我們所贏得的合約在全面實施後每年的支出將超過 5 億美元。目前只有一部分已加入。但隨著我們的進步，這些合約應該有助於改善從下半年開始的趨勢。

Another area that we see great promise in is the hospitality market. While it has only been a couple of months since our announcement of our entry into this industry sector, we are making great progress in building the foundation for future growth in this segment.

我們認為另一個前景廣闊的領域是飯店市場。雖然我們宣布進入該行業僅有幾個月的時間，但我們在為該領域未來成長奠定基礎方面取得了巨大進展。

We've built key relationships with major suppliers in the industry. We have forged new relationships with other key players in the industry. And we have met with many potential customers, receiving great feedback regarding our service and entry into the industry.

我們與業界的主要供應商建立了重要的關係。我們與業內其他主要參與者建立了新的關係。我們已經與許多潛在客戶會面，並收到了有關我們的服務和進入該行業的良好回饋。

Considering our progress, we are anticipating that our efforts in this area will more meaningfully contribute to our results in the second half of the year and beyond. From a product standpoint, most categories were lower on a year-over-year basis, including technology products, a factor that many other companies are experiencing industry-wide.

考慮到我們取得的進展，我們預計我們在這方面的努力將對我們今年下半年及以後的業績做出更有意義的貢獻。從產品角度來看，大多數類別的銷售額年比都有所下降，包括科技產品，這也是許多其他公司在整個產業面臨的問題。

Our adjacency product categories as a percentage of total revenue, our primary KPI, remained at 44% in the quarter, generally consistent with last year and recent trends. From an operating perspective, the flow-through effect of lower revenues, pricing mix, and related fixed-cost deleveraging resulted in operating income of $21 million in the quarter compared to $31 million in the prior year period.

我們的鄰近產品類別佔總收入的百分比（我們的主要 KPI）在本季度保持在 44%，與去年和近期趨勢基本一致。從營運角度來看，較低的收入、定價組合和相關固定成本去槓桿的流通效應導致本季的營運收入為 2,100 萬美元，而去年同期為 3,100 萬美元。

Despite the challenges, we are encouraged by our improving position for the future as we execute our strategy and expand into new market segments. This positions us to improve recent trends and drive our B2B business as we move into the second half of the year.

儘管面臨挑戰，但隨著我們實施策略並拓展新的細分市場，我們對未來不斷改善的處境感到鼓舞。這使我們能夠改善近期趨勢並在進入下半年時推動我們的 B2B 業務。

Now turning to our results in our supply chain business, Veyer, as shown on slide 12. Veyer's reported top-line performance reflected lower sales from its internal customers, ODP Business Solutions, and Office Depot, partially offset by continuing to build momentum and driving revenue growth from third-party customers.

現在轉向我們的供應鏈業務 Veyer 的業績，如投影片 12 所示。Veyer 報告的營收業績反映了其內部客戶 ODP Business Solutions 和 Office Depot 的銷售額下降，但第三方客戶持續增強的勢頭和收入成長推動部分抵消了這一影響。

On a consolidated basis, Veyer delivered sales of $1.2 billion in the quarter, primarily derived from supporting the purchasing and supply chain operations of ODP Business Solutions and Office Depot, which are effectively eliminated upon consolidation.

從合併口徑來看，Veyer 本季的銷售額為 12 億美元，主要來自對 ODP Business Solutions 和 Office Depot 的採購和供應鏈營運的支持，這些業務在合併後實際上被抵銷。

Veyer continued to make strong progress in executing its strategy to serve third-party customers, adding new logos to its customer list and driving a strong increase in external revenue.

Veyer 在執行服務第三方客戶的策略方面繼續取得強勁進展，在客戶名單中增加了新的品牌，並推動了外部收入的強勁成長。

Being mindful that some of Veyer's third-party profitability is accounted for as a contra expense instead of flowing through revenue. For Q1, Veyer delivered third-party revenue of $17 million, up 89% over last year.

請注意，Veyer 的部分第三方獲利能力被記為抵銷費用，而不是流入收入。第一季度，Veyer 的第三方營收為 1,700 萬美元，比去年同期成長 89%。

Veyer drove third-party IEA of $3 million, flat with the prior year, as the company invested in resources to onboard its slate of new customers in the quarter. Now I'll turn it over to Adam to cover our balance sheet highlights.

由於公司在本季投入資源來吸引新客戶，Veyer 推動第三方 IEA 達到 300 萬美元，與去年持平。現在我將把時間交給亞當來介紹我們的資產負債表重點。

Thank you, Max. It's great to be here with everyone this morning. I'm Adam Haggard, Co-CFO. Turning to slide 14, our balance sheet and liquidity position remains solid, ending the quarter with total liquidity of $653 million, consisting of $185 million in cash and cash equivalents, and $468 million in available credit under the Fourth Amended Credit Agreement. Total debt was $262 million.

謝謝你，馬克斯。很高興今天早上能和大家在一起。我是亞當‧哈加德 (Adam Haggard)，聯合財務長。轉到第 14 張投影片，我們的資產負債表和流動性狀況依然穩固，本季末的總流動性為 6.53 億美元，其中包括 1.85 億美元的現金和現金等價物，以及根據第四次修訂的信貸協議提供的 4.68 億美元可用信貸。總債務為2.62億美元。

Moving on to capital allocation, we continue to execute our capital allocation strategy, primarily investing in our core to drive the future of our business. We invested $21 million in CapEx in the quarter versus $31 million in the prior year period, targeted in our supply chain operations, distribution business, and digital capabilities to set ourselves apart in the industry.

在資本配置方面，我們繼續執行我們的資本配置策略，主要投資於我們的核心業務以推動我們業務的未來發展。我們在本季投資了 2,100 萬美元的資本支出，而去年同期為 3,100 萬美元，主要用於我們的供應鏈營運、分銷業務和數位化能力，以使我們在行業中脫穎而出。

As we move forward, we expect to prioritize our capital allocation towards investment in core B2B resources, positioning us to capture the growth opportunities Gerry discussed earlier. We believe investing in our B2B business and expanding into new market segments will drive the highest ROI and create long-term value for shareholders.

隨著我們不斷前進，我們期望優先考慮將資本配置用於投資核心 B2B 資源，以便我們能夠抓住 Gerry 之前討論過的成長機會。我們相信，投資我們的 B2B 業務並擴展到新的細分市場將帶來最高的投資回報率並為股東創造長期價值。

Before I turn the call back to Gerry, I would like to make a few comments about our preparedness regarding the evolving tariff situation that has been unfolding over the past few months. As Gerry mentioned, we have taken proactive measures to position ourselves effectively to mitigate potential impacts as the tariff situation continues to evolve. Over the past several years, we have diversified our sourcing strategy, shifting away from China to other countries in the region for direct imports supporting our private label products.

在我將電話轉回給格里之前，我想就我們對過去幾個月不斷變化的關稅形勢的準備情況發表一些評論。正如 Gerry 所提到的，隨著關稅狀況的不斷變化，我們已採取積極措施，有效地減輕潛在影響。過去幾年來，我們實現了採購策略多元化，從中國轉向該地區其他國家直接進口，以支持我們的自有品牌產品。

On the indirect side, we are closely collaborating with our vendors, monitoring developments, and implementing actions to minimize potential impacts. These measures include sourcing products from countries less affected by tariffs, introducing strategic pricing initiatives where feasible, and identifying alternative brands to reduce exposure. While we recognize that we are not entirely immune to the changes in the tariff environment, we are confident that the steps we have taken have positioned us well to navigate this dynamic situation.

在間接方面，我們正與供應商密切合作，監控事態發展，並採取行動以盡量減少潛在影響。這些措施包括從受關稅影響較小的國家採購產品、在可行的情況下引入策略性定價措施以及尋找替代品牌以減少風險。雖然我們認識到我們並不能完全免受關稅環境變化的影響，但我們相信，我們所採取的措施使我們能夠很好地應對這種動態局勢。

Looking ahead, while we are not providing detailed guidance at this time due to market dynamics and ongoing tariff uncertainty, we can share the following directional outlook for the year. We anticipate continued improvement and trends within our consumer business over the coming quarters.

展望未來，雖然由於市場動態和持續的關稅不確定性，我們目前無法提供詳細的指導，但我們可以分享以下今年的方向性展望。我們預計未來幾季我們的消費者業務將繼續改善並呈現趨勢。

In our B2B business, we expect to see improving trends as we onboard new customers and gain traction in the hospitality sector, with the majority of this improvement expected in the second half of the year. Veyer is expected to maintain its momentum by converting its customer pipeline, expanding its customer base, and driving growth in third-party revenue.

在我們的 B2B 業務中，隨著我們吸收新客戶並在酒店業獲得發展動力，我們預計會看到改善的趨勢，其中大部分改善預計將在今年下半年實現。預計 Veyer 將透過轉變客戶管道、擴大客戶群和推動第三方收入成長來保持其發展勢頭。

Finally, we anticipate significantly higher adjusted free cash flow generation compared to last year, along with further improvements to our leverage ratio by year-end. We remain focused on executing our strategic priorities and focused on our core to deliver on these expectations. With that, I turned the call back to Gerry.

最後，我們預計調整後的自由現金流將比去年大幅增加，同時到年底我們的槓桿率也將進一步改善。我們將繼續專注於執行我們的策略重點，並專注於我們的核心以實現這些期望。說完，我把電話轉回給了格里。

Thanks, Adam. Before we turn over for questions, I'd like to reiterate a few key points. First, we're off to a better start to the year, improving our consolidated year-over-year trends and generating a significant increase in adjusted free cash flow.

謝謝，亞當。在我們開始提問之前，我想重申幾個要點。首先，我們今年的開局更好，改善了我們的綜合同比趨勢，並實現了調整後自由現金流的顯著增長。

While the consumer business was the primary driver of our improved trends, and this performance has accelerated as we entered the second quarter of the year, we believe that our B2B business is in position to generate improving trends as we move forward, particularly in the second half of the year.

雖然消費者業務是我們趨勢改善的主要驅動力，隨著我們進入今年第二季度，這一表現已經加速，但我們相信，隨著我們向前發展，特別是在今年下半年，我們的 B2B 業務也將帶來改善的趨勢。

We have continued to win new business. In fact, over the past three quarters, we have won new contracts worth over $1.5 billion in annual revenue when fully implemented. We are encouraged by our progress and recognize we have more work to do as we focus on our core business.

我們不斷贏得新業務。事實上，在過去三個季度中，我們贏得了新合同，這些合約全面實施後年收入超過 15 億美元。我們對我們的進步感到鼓舞，並認識到我們在專注於核心業務時還有更多工作要做。

Second, we're successfully executing on our strategy and making progress in our expansion into the hospitality industry sector. We have forged key agreements with major suppliers and key market participants.

其次，我們正在成功執行我們的策略並在向酒店業擴張方面取得進展。我們與主要供應商和主要市場參與者達成了重要協議。

We have met with many potential customers covered in our first agreement, and we are receiving very positive feedback. We're engaging in discussions with other large hospitality management companies for future agreements. And we're adding to our sales expertise and building relevant inventory to help us meet future demand. In all, while we are in the early innings, we believe our efforts to expand into the hospitality sector will more meaningfully contribute to our results in the second half of the year.

我們已經與第一份協議中涉及的許多潛在客戶會面，並收到了非常積極的回饋。我們正在與其他大型酒店管理公司討論未來的協議。我們正在增強銷售專業知識並建立相關庫存，以幫助我們滿足未來的需求。總而言之，雖然我們處於起步階段，但我們相信，我們向酒店業擴張的努力將對我們下半年的業績做出更有意義的貢獻。

Third, we're actively executing our Optimized for Growth restructuring plan, which is designed to reduce fixed costs, accelerate our B2B pivot, and gradually decrease our reliance on retail. Furthermore, as highlighted earlier, our flexible business model and proactive measures have positioned us well to help mitigate potential tariff impacts effectively.

第三，我們正在積極實施「優化成長」重組計劃，旨在降低固定成本，加速我們的 B2B 轉型，並逐步減少對零售的依賴。此外，如前所述，我們靈活的商業模式和積極主動的措施使我們能夠有效地減輕潛在的關稅影響。

And last, considering our strong balance sheet, valuable asset base, supply chain and distribution capabilities, and strong cash flow profile, we believe ODP offers a unique and compelling value for shareholders as we execute our strategy. With that, operator, we'll turn it over for questions.

最後，考慮到我們強大的資產負債表、寶貴的資產基礎、供應鏈和分銷能力以及強勁的現金流狀況，我們相信，在我們執行策略時，ODP 為股東提供了獨特且引人注目的價值。接線員，接下來我們將回答大家的提問。

(Operator Instructions) Greg Burns, Sidoti.

（操作員指示）Greg Burns，Sidoti。

Could we maybe just start off with getting a little bit more insight into some of the momentum you have on the retail side of the business? Maybe a little bit more detail on what kind of sales promotions and sales strategies you've been implementing that have been driving the improved performance.

我們是否可以先稍微了解一下你們在零售業務方面取得的一些進展？或許您可以更詳細地介紹一下您實施了哪些類型的促銷和銷售策略來提高業績。

Sure, hey, good morning, Greg. This is Gerry. Thanks for joining the call today. Love to say that first, I'm super excited with the progress there. I mean, our strategy for a retail business is to drive cash and margin, and that team is doing it.

當然，嘿，早安，格雷格。這是格里。感謝您今天參加電話會議。首先我想說的是，我對那裡的進展感到非常興奮。我的意思是，我們零售業務的策略是推動現金和利潤，而該團隊正在這樣做。

So I would say there are four key things to that. First, over the last seven years, we've developed a really good muscle in our stores that took a long time to develop with our store leadership. By meeting and greeting customers to drive our net promoter score, we've taken that muscle and turned it into a sales motion. So, you know, they're meeting, greeting, and selling at the front door.

所以我想說，其中有四個關鍵點。首先，在過去的七年裡，我們的門市已經發展了非常好的實力，這是我們門市領導層花了很長時間才發展起來的。透過與客戶會面和問候來提高我們的淨推薦值，我們已經將這一優勢轉化為銷售動力。所以，你知道，他們在前門見面、問候和銷售。

Second, we've had a significant change in our merchandising strategy started last year at the UBS conference with Michael. I teased a little bit of that in March, but we're finding a different way to sell. We have a number of product categories that are costing much better than in years before. And we think that we're giving a different value to our customers through that.

其次，我們在去年與麥可一起參加的瑞銀會議上對我們的行銷策略進行了重大改變。我在三月曾透露過這一點，但我們正在尋找不同的銷售方式。我們有許多產品類別的價格比前幾年便宜得多。我們認為，透過這種方式，我們可以為客戶提供不同的價值。

Third, very importantly, we have a daily management system. And Kevin Moffitt, my President of the division, is doing a great job with [Rish] and Andrew. I join that call as well. We look at every store every day. We look at every district -- 42 districts every day. And we look at the performance of the three regions every day.

第三，非常重要的一點，我們有一個日常管理制度。我的部門總裁 Kevin Moffitt 與 [Rish] 和 Andrew 合作得非常出色。我也參加了這通通話。我們每天都會查看每家商店。我們每天查看每一個地區—42個地區。我們每天都會關注這三個地區的表現。

Having that, I'll say, gamified system that we put in place 60-ish days ago has made a dramatic difference in the business. Merchandising P/E started in Q4. Our CEO of our advertising business came up with a great idea, and we drove that. But it's across these four things that have driven tremendous improvements.

我想說，我們 60 天前建立的遊戲化系統已經為業務帶來了巨大的改變。商品本益比於第四季開始。我們的廣告業務執行長提出了一個好主意，然後我們推動了這個想法。但正是這四件事推動了巨大的進步。

I mean, having a 500 basis point difference in comp is dramatic from a year-over-year perspective. I will tell you, Greg, I'll tell everyone publicly, April's even better from a comp perspective. We're about a negative 4% roughly in April from a comp perspective. And sequentially, in the first nine days of May, we're even better than that.

我的意思是，從同比角度來看，500 個基點的差異是巨大的。格雷格，我會告訴你，我會公開告訴所有人，從競爭角度來看，四月會更好。從比較角度來看，4 月份我們的銷售額大約是負 4%。而連續到五月的前九天，我們的表現甚至比這還要好。

So we're really excited about the performance. I want to thank Kevin, Rish, Andrew, and his team. And especially my three store leaders, Carlos, Billy, and Chris were there. Absolutely executing brilliantly across the store chain.

所以我們對這場演出感到非常興奮。我要感謝 Kevin、Rish、Andrew 和他的團隊。尤其是我的三位店長卡洛斯、比利和克里斯也在那裡。整個連鎖店的執行效果絕對出色。

This is important. This generates a tremendous amount of cash flow, a tremendous amount of margin dollars. And as Max and Adam both said in their prepared remarks, we're seeing a difference, and we're optimistic this is going to make a difference for us over the long term as we ramp up both there and the B2B businesses.

這很重要。這會產生大量的現金流和大量的保證金。正如馬克斯和亞當在準備好的發言中所說，我們看到了變化，我們樂觀地認為，隨著我們在那裡和 B2B 業務上的擴張，這將對我們產生長期影響。

Okay great. Thanks. I guess considering the improved results and the traction you're seeing, how should we think about the pace of store closures going forward.

好的，太好了。謝謝。我想考慮到改善的結果和您所看到的牽引力，我們應該如何看待未來關閉商店的速度。

I guess also, considering the optimize for growth plan, how this all play together in terms of store optimization.

我還想，考慮到優化成長計劃，這一切在商店優化方面如何協同發揮作用。

Yeah, Optimized for Growth will look at what's the best path for optimizing the most cash flow and the most margin dollars for the business. I will say, with some of these cost levels, it will completely change some of the trajectory of Optimized for Growth because as our shareholders want, they want more cash. They want more margin dollars.

是的，「優化成長」將研究如何以最佳方式優化企業的最大現金流和最大利潤。我想說的是，在某些成本水平下，它將徹底改變「優化成長」的一些軌跡，因為正如我們的股東所希望的那樣，他們想要更多的現金。他們想要更多的保證金。

Obviously, more cash will be great for the business, and we will evaluate the stores. Adam and Mike are running models right now, looking at if we keep this negative 5%, negative 4% comp, which is different than our models, what it means from a plan perspective. And we'll evaluate that going forward.

顯然，更多的現金對業務大有裨益，我們將對商店進行評估。亞當和麥克目前正在運行模型，研究如果我們保持這個-5%、-4%的補償，這與我們的模型不同，從計劃的角度來看這意味著什麼。我們將對此進行評估。

But I want all our shareholders to hear, the most important thing is optimizing cash, optimizing margin. And I'm excited because we're demonstrating the results are going to produce, as Adam said in his prepared remarks, we're going to generate more cash flow for the year. And we're super excited by that.

但我想讓所有股東都聽見，最重要的是優化現金、優化利潤率。我很興奮，因為我們正在展示將會產生的結果，正如亞當在他的準備好的發言中所說的那樣，我們將在今年產生更多的現金流。我們對此感到非常興奮。

And our balance sheet got stronger on a quarter-over-quarter basis. And this is a retail business that should eliminate a lot of the fear that your shareholder base has, hey, what's going on with the retail business?

我們的資產負債表比上一季更加強勁。這是一項零售業務，應該可以消除股東們許多的擔憂，例如，零售業務到底怎麼了？

Our retail business is running extremely well right now. And we're going to continue to focus on the merchandising, the great store leadership, and the daily management model to optimize cash and margin dollars across the business.

我們的零售業務目前運作得非常好。我們將繼續專注於商品銷售、優秀的店鋪領導以及日常管理模式，以優化整個業務的現金和利潤。

Adam, actually, think that?

亞當，實際上，他是這麼想的嗎？

Yeah, I'd like to just reiterate your comment and just say that as we go through each quarter, we'll be continuously staring at the different stores and understanding the modeling and trying to extend stores as much as possible to drive as much cash flow in the future as we possibly can.

是的，我想重申您的評論，並說，隨著我們每個季度的推進，我們將不斷關注不同的商店，了解模型，並儘可能地擴大商店規模，以在未來盡可能地推動盡可能多的現金流。

Alright, great. And then on the solution side, why is the onboarding -- what has been holding up the onboarding process with some of these contracts?

好的，太好了。然後在解決方案方面，為什麼入職——是什麼阻礙了這些合約的入職流程？

I think it's different reasons for different customers. From a hospitality perspective, we're really early. It's a completely different industry. We're learning that from a supplier perspective. We love the supply relationships, but the lead times are much longer.

我認為不同的客戶有不同的原因。從酒店業的角度來看，我們確實起步較早。這是一個完全不同的行業。我們從供應商的角度了解這一點。我們喜歡供應關係，但交貨時間要長得多。

So as we said in our prepared remarks, it's taken us longer to actually get inventory in some of the key minimal viable categories. And we are rushing hard to do that. We are hiring a ton of qualified individuals to drive in that space, and I think, given the size of our relationship with CoreTrust, it's a huge contract with a lot of people to contact. And we are working really hard.

因此，正如我們在準備好的發言中所說的那樣，我們花了更長的時間才真正獲得一些關鍵的最小可行類別的庫存。我們正在努力實現這一目標。我們正在招募大量合格的人員來推動這一領域的發展，我認為，考慮到我們與 CoreTrust 的關係規模，這是一個需要聯繫很多人的龐大合約。我們確實在努力工作。

We are really pleased with the CoreTrust relationship and the team, including Mahesh and Greg, and the whole organization, but we will continue. It's coming. And we think it's coming in the second half.

我們對 CoreTrust 的關係以及團隊（包括 Mahesh 和 Greg）和整個組織感到非常滿意，但我們會繼續下去。它來了。我們認為它將在下半年到來。

We are going to start a daily focus in Dave's business like we did in Kevin's. So that worked. Adam, Max, and I talked about that earlier this morning. We are going to have that same daily momentum because I think that daily discipline and emphasis on results, what we took and what we found, super successful in retail. And gamifying who's first and who's last will be a great motivator for our B2B sales teams as well.

我們將開始每天關注戴夫的業務，就像我們對凱文的業務一樣。所以這有效。今天早上，亞當、馬克斯和我談了這個問題。我們每天都會保持同樣的動力，因為我認為，日常紀律和對結果的重視、我們所採取的措施和發現的結果在零售業中非常成功。而將誰是第一、誰是最後進行遊戲化也將大大激勵我們的 B2B 銷售團隊。

Great. Thank you.

偉大的。謝謝。

Michael Lasser, UBS.

瑞銀集團的麥可拉瑟。

Good morning. Thank you so much for taking my question. What categories within the retail business have you seen strengthen over the last few months, and is there evidence that you're seeing any signs of pull forward of demand as the consumer is trying to race out and buy some products ahead of what could be some price increases in reaction to the tariffs? Thank you.

早安.非常感謝您回答我的問題。在過去的幾個月裡，您看到零售業中哪些類別的績效有所增強？是否有證據表明，由於關稅導致價格上漲，消費者正試圖搶在價格上漲之前購買一些產品，從而出現需求提前上漲的跡象？謝謝。

Good morning, Michael, and thanks again for hosting me back in March. We really appreciated that. Great conference.

早安，邁克爾，再次感謝您三月份的接待。我們對此非常感激。很棒的會議。

Great to see you, Gerry.

很高興見到你，格里。

From a category perspective. I'll sort of answer a reverse direction, and we're seeing success in sort of non-tariff categories honestly. And so we've done a really good job of mitigating tariff exposure. We saw a little bit early like a 2 or 3 day period for like furniture and tech. We saw a bit of a spike. But that normalized pretty quickly.

從類別角度來看。我會從相反的角度回答，老實說，我們在非關稅類別方面取得了成功。因此，我們在降低關稅風險方面做得非常好。我們看到的時間稍微早了一點，例如家具和科技產品只有 2 到 3 天的時間。我們看到了一點飆升。但這種情況很快就恢復正常了。

These are sort of in our core categories, Michael, across the board of core supplies. I think that, I'm going to be careful. Obviously, we have the competitors sitting on the phone listening. But yeah, I'd be happy to spend time with you offline as well.

邁克爾，這些都是我們的核心類別，涵蓋了所有核心供應品。我想，我會小心的。顯然，我們的競爭對手正坐在電話旁聽著。不過，是的，我也很樂意和你一起線下度過時光。

But we've really made a shift from our merchandizing strategy from our traditional high low to a different merchandizing strategy. That's more value oriented for our customers. I'm thinking that is really adding a lot of value. And what maybe, we can use that time later in the week or whenever you're available. I'd love to catch up with you.

但我們的行銷策略確實已經從傳統的高低行銷策略轉變為不同的行銷策略。這對我們的客戶來說更有價值。我認為這確實增加了很多價值。也許我們可以在本週晚些時候或您有空的時候利用這段時間。我很想和你見面。

That sounds great. Count on it. How much of an impact will the tariff situation be to ODP Corp across all of its segments? And how do you plan to mitigate the potential impact of tariffs?

聽起來不錯。相信它。關稅情勢對ODP公司所有業務部門將產生多大影響？您計劃如何減輕關稅的潛在影響？

We believe we've mitigated almost all the impact. Let me explain that because people might ask, how did they do that? A lot of the impact was on minimum average price, what we call MAP products, that our partners/suppliers set.

我們相信我們已經減輕了幾乎所有的影響。讓我解釋一下，因為人們可能會問，他們是怎麼做到的？很大一部分影響來自於我們的合作夥伴/供應商設定的最低平均價格，也就是我們所謂的 MAP 產品。

For example, our tech providers just rate the actual COGS of the product, and so the whole market floats up. From a pricing perspective, from us absorbing price a cost increase, the whole market's doing that. So the whole price looks up and we're able to pass that through contracts and pass that and obviously change our store pricing. That was the majority of a lot of it; and obviously there could be some demand elasticity, but we haven't seen that yet.

例如，我們的技術提供者僅對產品的實際 COGS 進行評級，因此整個市場就會上漲。從定價角度來看，我們吸收價格上漲，整個市場都在做這件事。因此，整個價格都會上漲，我們可以透過合約傳遞這一訊息，並顯然改變我們的商店定價。這佔了大部分；顯然可能存在一些需求彈性，但我們還沒有看到。

Second is we did a really good job on our direct imports. It's a big chunk of our COGS for private label and other pieces. Back in 2020, if you remember, we shifted a bunch out of China to other countries. And so Vietnam, Indonesia, Malaysia, a number of places. Sam and our GSO team have done it, and John's organization has done a great job of leading this.

第二，我們的直接進口工作做得非常好。這是我們自有品牌和其他產品的銷售成本的很大一部分。如果你還記得的話，早在 2020 年，我們就將大量產品從中國轉移到了其他國家。越南、印尼、馬來西亞等許多地方也是如此。Sam 和我們的 GSO 團隊已經完成了這項工作，John 的組織在領導這項工作方面也做得非常出色。

And so we've dramatically reduced our impact on our direct COGS in China. And so as we have the pause from a tariff perspective, we obviously we're looking at that very carefully. And we have a 3 times a week war room that my whole staff, all procurement teams, all the merchants are on. We're looking at inventory, but because the fact we've had that shift in that, in COGS, we are not heavily exposed at this time.

因此，我們大幅降低了對中國直接銷售成本的影響。因此，當我們從關稅角度暫停時，我們顯然正在非常仔細地研究這個問題。我們每週有三次作戰室會議，我的全體員工、所有採購團隊、所有商家都會參加。我們正在關注庫存，但由於事實上我們已經發生了轉變，在銷貨成本方面，我們目前並沒有受到太大的影響。

And if there's a 10% where we believe we can drive that into our pricing, and we're not going to have a huge impact. There is a small impact, but we think we've mitigated over. Again, we will look at this on a daily basis. As you know, something could change overnight and something else could go up. Obviously, we're all hoping and praying that there's settlement in the future as well. So appreciate it.

如果有 10% 的比例，我們相信我們可以將其納入我們的定價中，並且不會產生巨大的影響。影響很小，但我們認為已經減輕了。再次強調，我們會每天關注這個問題。如你所知，有些事情可能在一夜之間發生變化，而其他事情也可能出現。顯然，我們都希望並祈禱未來能夠達成和解。非常感謝。

Got you. Okay, one last question, recognizing you're not providing guidance, but how could, at least, conceptually the B2B business in light of the potential for continued underlying softness in the core business but being offset by the ramp in some of the new business activity that seems to be on the horizon? Thank you very much.

明白了。好的，最後一個問題，我知道您沒有提供指導，但至少從概念上講，鑑於核心業務可能繼續保持疲軟，但即將出現的一些新業務活動的增長可以抵消這種影響，那麼 B2B 業務如何呢？非常感謝。

Yeah, let me -- I'll take a high level and let Max and Adam will jump in on the details. At a high level, I think, we do feel very confident from a cash flow perspective that we're going to be treated for the year as Adam said. And then from -- as we said in our very script, we do think there'll be sequential improvement in the second half of Dave's business. It's still too early to figure out that exact piece. But we do feel like we have line aside into improvements in the second half of the year across the business. But Adam and Max, please jump in.

是的，讓我——我會採取高層措施，讓 Max 和 Adam 深入了解細節。從高層次來看，我認為，從現金流的角度來看，我們確實非常有信心，正如亞當所說的那樣，我們將在今年得到待遇。然後——正如我們在腳本中所說的那樣，我們確實認為戴夫的業務在下半年會有所改善。現在弄清楚這一點還為時過早。但我們確實感覺到，我們已經為下半年整個業務的改進做好了準備。但是亞當和馬克斯，請加入吧。

Yeah, Michael, it's Max. Good to talk to you again. Yeah. So while we're not providing guidance, we do need to evaluate the tariff impact, what that's going to do to customer demand. But as Gerry said, we tried to provide as much high-level guidance as we could.

是的，邁克爾，我是馬克斯。很高興能再次和你交談。是的。因此，雖然我們沒有提供指導，但我們確實需要評估關稅的影響，以及這將對客戶需求產生什麼影響。但正如格里所說，我們盡力提供盡可能多的高層指導。

One other point is on free cash flow. So the performance of our consumer business right now is driving more cash and more margin. So we expect to have higher free cash flows than we did last year as well.

另一點是關於自由現金流。因此，我們目前的消費者業務表現正在推動更多的現金和更高的利潤。因此，我們預計今年的自由現金流也將比去年更高。

But really, we see a great trajectory with all three of our business units right now. I'm really excited about it. And just for clarity, (multiple speakers) solution, so everyone understands. Sorry about that.

但實際上，我們現在看到我們三個業務部門都發展得很好。我對此感到非常興奮。為了清楚起見，（多位發言者）提出解決方案，以便每個人都能理解。很抱歉。

Joshua Zoepfel, NOBLE Capital Markets.

Joshua Zoepfel，NOBLE Capital Markets。

I apologize, I fell off so I missed some of the questions. So if I repeat something just let me know and we'll move on. So you know a lot of talk about the tariffs and the potential impact and it -- I don't know if you break it out this way or not, but I guess, what percent of the business or revenues is consumable products versus non-consumable products.

抱歉，我失誤了，所以我錯過了一些問題。因此，如果我重複了某件事，請告訴我，然後我們繼續。所以你知道很多人談論關稅和潛在影響——我不知道你是否這樣細分，但我猜，業務或收入中有多少百分比是消耗品，有多少百分比是非消耗品。

Can you clarify what you mean consumable versus non-consumable?

您能解釋一下消耗品和非消耗品的意思嗎？

So paper, I mean, if you're in the office and using paper, you're consuming paper versus a desk. You're buying a desk once.

所以紙張，我的意思是，如果你在辦公室使用紙張，那麼你就是在消耗紙張而不是辦公桌。您只需購買一次辦公桌。

Got it. Versus like furniture, which is -- I got it. So first, a big piece of our business is paper and all our paper supply is made in the USA. So thank you for our two suppliers that have US plants and we also have facilities in Canada for our grants and (inaudible) business

知道了。與家具相比，我明白了。首先，我們的業務很大一部分是紙張，我們所有的紙張供應都在美國製造。感謝我們的兩家供應商，他們在美國有工廠，我們在加拿大也有工廠，用於我們的撥款和（聽不清楚）業務

That's a super important piece because we don't have exposure of other companies who use imported paper versus being made in the USA. I would say that we've done a really good job on the consumable core products, which is what we're seeing to strengthen our B2C business that we talked about the comp changes. That's all consumable product that's driving that.

這是非常重要的一點，因為我們沒有接觸過其他使用進口紙張而不是美國製造紙張的公司。我想說，我們在消耗性核心產品方面做得非常好，這就是我們所看到的加強我們 B2C 業務的方法，我們談到了補償變化。這些都是消耗品推動的。

So why we're excited with the progress, there is even during this tariff peace, we're seeing a substantial comp improvement on a monthly and weekly basis. And so we think our strategy is working. So we've gone across all those areas, and we've evaluated where we think impact is.

因此，我們對這一進展感到興奮，即使在關稅和平期間，我們也看到每月和每週的銷售額都有大幅增長。因此我們認為我們的策略是有效的。因此，我們考察了所有這些領域，並評估了我們認為的影響所在。

Other consumable products are really affected by the market minimum average pricing as we talked about. And that's ink and toner and some of the technology products. And there was a pause on the higher tariffs on a lot of that. And so that's allowed us to not have the short term impact across year at this time.

正如我們所說，其他消費品確實受到市場最低平均定價的影響。其中包括墨水、碳粉和一些技術產品。對其中許多商品的加徵關稅已經暫停。因此，這使得我們目前不會受到全年短期影響。

There are increases of those products, but that's going to be -- the whole market will go up. And honestly that happens a lot throughout the last 9, 10 years. Pricing and costs go up. And there's a pretty consistent demand pattern as a result of that.

這些產品的價格會增加，但整個市場都會上漲。說實話，在過去的 9 到 10 年裡，這種情況經常發生。價格和成本上漲。因此，需求模式就變得相當一致。

So, we don't have a lot of things that we don't think we're exposed longer term because of working with suppliers, making sure we're in the right low tariff locations. And honestly, stuff that wasn't -- we didn't think it was our position, we quit ordering. And we've been very disciplined in our procurement organization, which is part of their -- which is led by John Gannfors, our procurement organization led by Eric, done a great job of working with our partners and mitigating a lot of the exposure by being creative, looking at different suppliers, looking at different -- obviously, different factories they have across the world that are in low tariff locations.

因此，透過與供應商合作，確保我們處於正確的低關稅地點，我們認為我們沒有太多不會長期受到影響的事情。老實說，那些不合適的東西——我們認為那不適合我們，所以我們就不再訂購了。我們的採購組織非常嚴謹，該組織由埃里克領導，由約翰·甘福斯 (John Gannfors) 領導，他們與合作夥伴合作非常愉快，通過發揮創造力、考察不同的供應商、考察不同的——顯然，他們在世界各地低關稅地區的不同工廠——減輕了很多風險。

Thanks for that. And you talked about some initiatives to convert your strong pipeline of potential new business. And I guess the question is kind of what's different? What are you doing new now that you weren't doing in the past to convert that pipeline into new business.

謝謝。您也談到了一些將強大的潛在新業務管道轉化為實際業務的舉措。我想問題是，有什麼不同？您現在正在做哪些過去沒有做過的新事情來將該管道轉化為新業務。

Yeah, great question. First, we're, bringing in additional leadership in some of these new categories, very qualified in those marketplaces, which is super important. Second, we've started a really rigorous management system on a weekly basis. We're going to clip that up even more to make sure we're driving that.

是的，很好的問題。首先，我們在一些新類別中引入了更多領導者，這些領導者在這些市場中非常合格，這非常重要。第二，我們開始實行非常嚴格的周度管理制度。我們將進一步加強這方面的工作，以確保我們能夠推動這項進程。

And then we're having a lot of CEO to CEO meetings or President to President meetings on a frequent basis with these new partners and new customers to ramp up. And so honestly -- and hospitality, we're learning. It's a brand new category. We love it because it's an invitation only category which a lot -- so you can't =--people can't just open the floodgates and run in.

然後，我們會頻繁與這些新合作夥伴和新客戶舉行許多 CEO 之間的會議或總裁之間的會議，以擴大合作。所以說實話，我們正在學習熱情好客。這是一個全新的類別。我們喜歡它，因為它是一個僅限邀請的類別，所以你不能=——人們不能直接打開閘門跑進來。

But it's a big market we're learning, and I think that we're building the muscle, sort of like what I talked about retail, we start building muscle in Q4 on this merchandizing change and the store operations in the future.

但我們正在了解一個很大的市場，我認為我們正在增強實力，有點像我談到的零售業，我們將在第四季度開始增強這種商品銷售變化和未來商店運營的實力。

We feel we're sort of in -- and we're seeing those results now. We feel like we're sort of in that same pattern of building the muscle, building the sales capability. We've learned a ton about the inventory management and the lead time of the products and work with these partners and getting inventory in.

我們感覺我們已經進入了——而且我們現在看到了這些結果。我們感覺自己正處於同樣的模式中，也就是增強實力、提升銷售能力。我們學到了很多有關庫存管理和產品交貨時間的知識，並與這些合作夥伴合作並獲取庫存。

And then we just have to build that capability and starting to ramp those across hospitality and across CoreTrust and across some of these other large ones we have across the business. So we're-- we believe in the second half, we're going to start seeing results. And I think that will build a ton of momentum for us going into '26 as well.

然後，我們只需要建立這種能力，並開始在酒店業、CoreTrust 以及我們業務範圍內的其他一些大型企業中推廣這種能力。所以我們相信，下半年我們將開始看到成果。我認為這也將為我們進入 26 年累積巨大的動力。

And then lastly for me I didn't hear any mention of the buyback. It's something that you guys have been -- I know last year was pretty big, the year before. And at the end of the year, you had mentioned you were cutting back on that. So I don't know if you give us an update on that.

最後，我沒有聽到任何關於回購的消息。這是你們一直在做的事——我知道去年、前年都很重要。而在年底，您曾提到要削減這方面的開支。所以我不知道您是否向我們提供有關該問題的最新消息。

Thanks for the question. I recognize the unintended message it sends. Let me say that the board management team have complete confidence in the future of the company. And very importantly, we continually evaluate potential stock repurchases on a regular basis, and we assess if there are any legal or regulatory constraints. This approach also applies to potential management or director purchases as well. This way, we don't comment on there individual buying decisions. And so, that's -- I think I've answered as correctly as I can.

謝謝你的提問。我認識到它所發出的無意的信息。我想說的是，董事會管理團隊對公司的未來充滿信心。非常重要的是，我們會定期評估潛在的股票回購，並評估是否有任何法律或監管限制。這種方法也適用於潛在的管理或董事購買。這樣，我們就不會對他們的個人購買決定發表評論。所以，那是——我認為我已經盡可能正確地回答了。

Thank you. That concludes the Q&A session for today. I will now turn the call back over to the ODP Corporation CEO, Gerry Smith, for any closing remarks.

謝謝。今天的問答環節到此結束。現在我將電話轉回 ODP 公司執行長 Gerry Smith，請他做最後發言。

Yeah, I just want to thank everyone for joining the call today. We are confident that our core business is improving. We're going to continue to focus on our core. We're going to focus on continuing the B2C comp improvement across our merchandizing.

是的，我只想感謝大家今天參加電話會議。我們相信我們的核心業務正在改善。我們將繼續關注我們的核心。我們將專注於繼續改善我們商品銷售中的 B2C 同類產品。

Our store execution has been great. And our daily focus -- we're going to also put that focus -- continue our focus on our B2B business on ramping up our core business of these new big wins as well as our hospitality business. And we're excited with the 85% year on year growth in John's business as well.

我們的商店執行情況非常好。我們每天的重點——我們也將重點放在——繼續關注我們的 B2B 業務，加強我們的核心業務，包括這些新的重大勝利以及我們的酒店業務。我們對約翰的業務年增 85% 也感到非常興奮。

And so we're going to stay focused on generating cash, driving margin dollars and driving continued improvement as we saw much stronger balance sheets from a Q4 to a Q1 perspective. And we're confident, as Adam and Max said, that that's going to continue to improve in the future. And we'll have the ability to continue to generate cash to invest in future business opportunities to maximize shareholder value. Thank you so much everyone for joining the call today. Appreciate it greatly. Have a great day.

因此，我們將繼續專注於創造現金、推動利潤成長和推動持續改善，因為我們看到第四季度的資產負債表比第一季更加強勁。正如亞當和馬克斯所說，我們相信，未來情況將會繼續改善。我們將有能力繼續產生現金來投資未來的商業機會，以實現股東價值最大化。非常感謝大家今天參加電話會議。非常感謝。祝你有美好的一天。

Thank you for your participation. That concludes today's call. You may now disconnect.

感謝您的參與。今天的電話會議到此結束。您現在可以斷開連線。