Segment Results. North American sales fell 24.7% to $231.7 million while adjusted operating income fell 29.8% to $42.4 million. While back-to-school sales were solid, there were significant declines in the commercial office products space. EMEA sales of $88.3 million fell 31.2% with the segment posting an adjusted operating loss of $1.1 million compared to adjusted operating income of $7.4 million last year. International sales came in at $46.9 million, down 43.2% with an adjusted operating loss of $3.2 million versus $4.4 million of adjusted operating income last year. All segments were impacted by lower demand due to COVID-19.Cost Reductions. Second quarter cost reductions came in at $33 million, well above management's previous $20 million estimate. ACCO is taking additional measures to right-size the business in certain markets which should result in an additional $11 million of annual savings. Management is keeping a tight lid on expenses and will take additional actions if necessary.Sharper Focus. With the likely longer-term shift in work and school patterns, management is placing greater focus on faster growing product segments and channels. The mass, e-tail, and direct-to-consumer channels saw significant growth in the quarter. Products such as Kensington computer docking stations and TruSens air purifiers experienced solid growth in the quarter. We believe the Company will continue to shift away from the commercial segment and emphasize higher margin, faster growing consumer oriented brand name products. Updated Projections. Management provided 3Q guidance of a revenue decline of 15%-20% and adjusted EPS of $0.13-$0.19. We are maintaining our previous estimates of revenue of $405 million and adjusted EPS of $0.13 given the uncertainty surrounding the back-to-school season as well as the timing of a rebound in commercial sales.Compelling Risk/Reward. We continue to believe ACCO shares present investors a compelling risk/reward opportunity. However, given the uncertainty as to how quickly the economy will rebound we are lowering our 12-month price target to $10. At our PT, ACCO shares would trade at 9.0x our 2020 EBITDA estimate and 1.1x 2020 revenues. We believe ACCO is well positioned to weather the COVID storm with solid growth opportunities post the crisis. Read More >>