Why Barnes & Noble Education Shares Are Trading 30% Lower

Barnes & Noble Education Inc BNED shares are trading lower by 29.41% to $1.80 Tuesday afternoon after the company reported worse-than-expected second-quarter adjusted EPS and sales results.

What Happened?

Barnes & Noble reported quarterly earnings of 45 cents per share which missed the analyst consensus estimate of 76 cents. The company reported quarterly sales of $617.10 million which missed the analyst consensus estimate of $675.01 million by 9%. This sales figure represents a roughly 2% decrease over sales of $626.98 million in the same period last year.

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The company has three reportable segments: Retail, Wholesale and Digital Student Solutions. 

Barnes & Noble says retail sales decreased by $10.3 million, or 1.7%, as compared to the prior year period. Wholesale second quarter sales of $21.1 million decreased by $0.6 million, or 2.5%, as compared to the prior year period. Digital Student Solutions second quarter sales of $8.5 million increased by 2.3%, as compared to the prior year period.

According to data from Benzinga Pro, Barnes & Noble has a 52-week high of $7.74 and a 52-week low of $1.51.