Another Coronavirus Impact: 'Elongated' BTS Season, ODP CEO Says; Stock Up

A disappointing back-to-school season has been “elongated,” said ODP CEO Gerry Smith on a quarterly call Thursday (see Q3 materials here). The former Office Depot expects sales that didn’t materialize in the traditional BTS season to stretch into Q4 and Q1, Smith said, hoping the 53% of students currently learning from home due to the COVID-19 pandemic will go back to the classroom in coming months and need supplies. ODP had a 9% Q3 revenue drop to $2.5 billion, but e-commerce sales grew 20% as the company positioned itself as a source for home office and learn-from-home products. Shares closed up 18% at $24.90. Chief Financial Officer Anthony Scaglione highlighted adjacent categories -- cleaning and break room, personal protective equipment, technology, furniture, and copy and print -- which made up 47% of business solutions division revenue. Buy online, pick up in store fulfillment rose 82%, said Scaglione.