The ODP Corporation (NASDAQ:ODP) Q4 2022 Earnings Call Transcript

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Timothy Perrott: Great. And the last question is regarding Office Depot just generally, it seems that traffic trends have been overall lower do you expect this to continue into 2023 and what is the outlook for store close this year?

Gerry Smith: I’ll start and I’ll let Anthony finish, from an overall perspective, as we said at Investor Day we believe category expansion is a huge key to that and we’re actually doing a lot of deep dives across all our categories right now. We want to bring into categories to the business. Also want to highlight hey, we have a 20-minute guarantee out there from a BOPIS online pickup and store that no one else has. And so, we think there’s going to be a lot of advantage omnichannel. I think Kevin’s team has done a remarkable job – but I think almost world-class mid to high 70s from a low to mid-70, excuse me, from a net promoter score perspective and that’s going to make a difference over time. Customers are going to remember that experience. They’re going to want to come back into the stores across all those pieces, it’s important, Anthony, you talk about footprint.

Diego Scaglione: Yes, I echo Gerry’s comments, really-really proud of what the retail team and the omnichannel I should say has been able to accomplish over the last couple of years. And with the product assortment with our outlook with a stronger network, we expect a slightly slower pace of store closures. Again, this is going to be dependent on a number of factors, but we expect a year-over-year slightly slower pace of store closures.

Timothy Perrott: Great, super. I think we’re up against the hour. So I’ll just ask Gerry any final comments.

Gerry Smith: Thanks, Tim for coordinating, Michael, thanks for the questions you submitted. And for our investors, thank you. I’m super proud of our team for a tremendous 2022. We delivered our commitment, which is part of our 5C culture on Investor Day we said we’re going to hit our commitments, we deliver that. Our low cost model contributed that. Our operational excellence distributed that. Our 4 business unit strategy and very importantly, our share buyback is very important from a shareholder perspective and really driving its value. Our #1 focus is driving shareholder value, we think we’re well positioned 2023 to do that and I do want to mention again the NASDAQ tomorrow, we send an invitation out, but really — I encourage everyone to come and attend our Varis Investor Days there.

You have Prentis and Daniel and the team there to talk about Varis, I’ll be there with Anthony as well. We’re really excited to talk about the potential value creation of Varis for ODP shareholders in the future. Thank you again everyone. We’ll see a bunch of you tomorrow and look forward to talking again in the next quarter.

Timothy Perrott: Operator, that’s all we have. We can end the call.

Operator: Thank you for your participation, this concludes today’s call. You may now disconnect.

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