OfficeMax income flat for the quarter

NAPERVILLE, Ill. OfficeMax today reported net income of $27.4 million, or 35 cents per diluted share, for the second quarter ended June 30 compared with net income of $27.4 million, or 35 cents per diluted share, in the second quarter of 2006.

Net income and diluted earnings per share increased approximately 20% in the second quarter of 2007 from net income of $23 million, or 29 cents per diluted share in the second quarter of 2006, excluding special items.

OfficeMax retail segment sales increased 4.6% to $935.3 million in the second quarter of 2007 compared to the second quarter of 2006. Retail segment same-store sales increased 1.6% in the second quarter of 2007.

Retail segment operating income increased to $24.7 million in the second quarter of 2007 from $18.2 million, excluding special items, in the second quarter of 2006. Retail segment gross margin increased to 29.9% in the second quarter of 2007 from 29.7% in the second quarter of 2006, primarily due to improved vendor funding and more effective promotional strategies. Retail segment operating income margin in the second quarter of 2007 benefited from lower occupancy costs and reduced advertising expense, partially offset by increased allocated general and administrative expenses.