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Article: MAXED OUT; Office products retailer's run of positive earnings surprises may be coming to an end.(NEWS)
- Article from:
- Crain's Chicago Business
- Article date:
- September 28, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: MONEE FIELDS-WHITE
OfficeMax Inc. has shuttered underperforming stores and cut jobs over the past several yearsmoves that have helped it to beat earnings expectations despite several quarters of losses and to pull its stock out of a two-year nose-dive.
From a low of $1.95 in March, the stock hit a 52-week high of $13.62 this month, still well below its price of almost $54 in early 2007. The stock closed Friday at $12.40.
But analysts say the revival may be running out of gas. With meager signs of economic life, a reliance on cost-cutting to compensate for sliding sales will no longer sustain its momentum.
"They've definitely ...