Tue, Sep 10, 8:19 PM (101 days ago)
For the quarter ended July 27, 2024, Barnes & Noble Education, Inc. (BNED) reported total sales of $263.4 million, a slight decrease of 0.3% year-over-year, driven by store closures and a decline in general merchandise sales. The net loss increased to $99.5 million from $50 million, largely due to a $55.2 million loss on extinguishment of debt. Adjusted EBITDA improved to $(20.7) million, reflecting lower selling and administrative expenses, down 13.5% to $67 million, attributed to cost-saving initiatives. The Retail segment saw a 1.7% decrease in sales, while the Wholesale segment's sales dropped 11.8%. The gross margin declined to 17.9% from 19.2%, influenced by higher markdowns and a shift towards digital course materials. The company continues to focus on its BNC First Day® programs, which contributed to a 32% increase in course material sales. Cash flows from operations were negative at $(144 million), impacted by delayed vendor payments. BNED's liquidity was bolstered by a recent equity raise of $95 million. Future operations may be affected by market competition and regulatory changes in the educational sector.