Barnes & Noble Education, Inc BNED reported first-quarter FY24 revenues of $264.16 million, beating the consensus of $255.96 million. Revenues increased by 3.7% Y/Y.
Adjusted EPS loss of $(0.86) missed the consensus of $(0.73) loss.
Q1 gross profit of $50.63 million decreased by 9.6% Y/Y, with margins of 19.2% (down 280 basis points).
Operating loss in the quarter under review narrowed Y/Y to $(41.73) million, narrower than a $(45.61) million loss a year ago.
The company has two reportable segments: Retail (+3.8%) and Wholesale (+4.6%).
Retail segment gross comparable store sales increased 5.9%. Course material gross comparable store sales increased 6.5%.
As of July 29, the company's cash and cash equivalents were $7.7 million, and the total outstanding debt was $277.7 million.
BNED ended the quarter with 1,289 physical and virtual stores, a net decrease of 117 stores Y/Y. The company focuses on closing underperforming, less profitable stores, and satellite locations.
CFO Appointment: The company appointed Kevin F. Watson as its Chief Financial Officer, effective September 7, 2023. Watson will report directly to Michael P. Huseby, Chief Executive Officer, BNED.
FY24 Outlook: The company reiterated the Adjusted EBITDA outlook from continuing operations of approximately $40 million, driven by growth in the Retail Segment and the impact of cost reductions executed/planned in fiscal years 2023 and 2024.
Price Action: BNED shares are trading higher by 4.13% to $1.26 on the last check Wednesday.
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