Barnes & Noble Education Q4 Revenues Dip 4%, Plans Cost Reduction To Boost Margins

Barnes & Noble Education, Inc BNED reported fourth-quarter (Q4) FY23 revenues of $241.85 million, missing the consensus of $251.44 million. 

Revenues fell 3.7% Y/Y.

Adjusted EPS loss of ($0.69) beat the consensus of ($0.80) loss.

Q4 gross profit of $58.28 million decreased by 19.2% Y/Y, with margins of 24.1% (down 460 basis points).

Operating loss in the quarter under review widened Y/Y to $34.43 million, compared to a $16.62 million operating loss a year ago.

The company has two reportable segments: Retail (down by $10.2 million to $235.4 million) and Wholesale (up by $0.2 million to $9.2 million).

As of April 29, the company's cash and equivalents were $14.2 million, and the total outstanding debt was $184.2 million.

Cost Reduction Plan: BNED chief executive Michael P. Huseby said the company is "on track to achieve the previously announced $30 million to $35 million of cost reduction initiatives, and we are executing on additional cost reduction opportunities that will impact Fiscal 2024."

The company added that it will ride on profitable growth in fiscal 2024 and beyond. 

FY24 Outlook: The company expects Adjusted EBITDA from continuing operations to be 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 lower by 3.66% to $1.58 premarket on the last check Friday. 

Image: BNCollege.com