The Home Depot Announces First Quarter Results

Total reported sales for the second quarter of 2021 were $2.3 billion, an increase of 6% compared to the second quarter of 2020. The year-over-year increase in revenue was partially driven by stronger business activity as the public sector returned to work and schools began to return to in-class learning. Product sales in the second quarter were up 6% relative to the prior year period, driven by stronger demand for core supply product categories, workspaces and technology. Service revenue in the first quarter was up 8%, largely related to stronger demand for managed print and fulfillment, as well as copy and print services in both BSD and Retail Divisions. The Company reported operating loss of $78 million in the second quarter of 2021, compared to operating loss of $456 million in the prior year period. GAAP operating results in the second quarter included $122 million of charges including $115 million of non-cash asset impairment charges, and $7 million in net merger, restructuring and other operating costs. Asset impairment charges of $115 million in the second quarter of 2021 included $114 million related to impairment of goodwill and other intangible assets at CompuCom, largely related to the macroeconomic effects of COVID-19 on current business conditions. Net merger, restructuring and other operating costs of $7 million were primarily associated with the planned separation of B2B operations. Net loss was $88 million, or $(1.62) per diluted share in the second quarter of 2021, compared to net loss of $439 million, or $(8.19) per diluted share in the second quarter of 2020.

It seems businesses are finally bouncing back after the past two years of the pandemic. However, even though business is picking up, there is one glaring issue: The availability of paper stocks has become limited and unpredictable, and as a result the price of paper stock is inevitably increasing. Supply chain issues have been throwing curveballs at various manufacturing segments, and the printing industry is no exception. The availability of paper stocks has become slim as raw material costs rise, mills enact allocations and price increases, and labor shortages continue. So, are we doomed? Not even close. During an hour-long Printing Impressions and In-plant Impressions webinar, Marco Boer VP of I.T. Strategies and President of Midland Specialty Paper & Film Mike Ratcliff discussed the reasons for printing paper supply shortages, the steps printing companies can take to address the limitations head-on, and what print providers can expect in the future of the paper supply chain.

Bookstore sales continued their strong rebound in 2021 over 2020 in November. Preliminary estimates from the U.S. Census Bureau indicate bookstore sales were $709 million, up 43% over the $496 million in sales from November 2020. This increase followed a 53% sales jump for year-to-year October sales.