Barnes & Noble Education (BNED) Stock: Why The Price Substantially Dropped

By Amit Chowdhry ● Nov 30, 2021
  • The stock price of Barnes & Noble Education Inc (NYSE: BNED) fell by over 20% during intraday trading today. This is why it happened.

The stock price of Barnes & Noble Education Inc (NYSE: BNED) fell by over 20% during intraday trading today. Investors are responding negatively to the company’s second-quarter fiscal year 2022 financial results.

These are the financial highlights for the second quarter of 2022:

— Consolidated second-quarter GAAP sales of $627 million increased 5.3%, as compared to the prior-year period. The FactSet consensus was expecting $663 million.

— Consolidated second-quarter GAAP net income improved $15.0 million to $22.5 million, compared to GAAP net income of $7.5 million in the prior-year period.

— Consolidated second-quarter non-GAAP Adjusted Earnings of $25.0 million, compared to non-GAAP Adjusted Earnings of $11.1 million in the prior-year period.

— Consolidated second-quarter non-GAAP Adjusted EBITDA of $39.0 million, compared to non-GAAP Adjusted EBITDA of $24.5 million in the prior-year period.

— Retail segment gross comparable-store sales (non-GAAP) increased 13.2%. For comparable-store sales reporting purposes, logo and emblematic general merchandise sales fulfilled by FLC and Fanatics are included on a gross basis.

KEY QUOTE:

“We were thrilled to welcome students back to campus for the 2021-2022 academic year and our second-quarter results benefitted from their return to on-campus, in-person learning, and the significantly increased resumption of on-campus events and sporting activities. Despite overall enrollment declines and many community colleges continuing to offer virtual classes, on a gross comparable sales basis, our textbook business was essentially flat and, despite the global supply chain issues, our general merchandise business grew 78%, as many of our campus partners returned to a more traditional Fall rush experience. Our results also benefited from the significantly increased adoption of our First Day offerings, which provide improved student outcomes through equitable access, enhanced convenience, and improved course material affordability. Our DSS business also continued to exhibit strong subscriber growth as students looked for solutions to provide additional help with their studies. While the environment we are operating in remains challenging, we continue to execute on our strategic initiatives that are centered on profitable growth.”

— Michael P. Huseby, Chief Executive Officer and Chairman, BNED

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.