In This Story
Barnes & Noble Education Inc (BNED+0.72%) has submitted its 10-Q filing for the quarterly period ended October 26, 2024.
The filing reports a decrease in total sales to $602.1 million from $610.4 million in the same quarter the previous year. This decrease is attributed to store closures, although comparable store sales increased by 3.8% due to the growth of BNC First Day programs.
Gross profit for the quarter was $137.6 million, representing 22.9% of sales, compared to 22.3% in the previous year. The increase in gross margin is due to lower contract costs and higher rental margin rates.
Operating income was reported at $56.3 million, up from $35.8 million in the previous year. This increase is largely due to a reduction in selling and administrative expenses by $13.0 million.
Net income from continuing operations for the quarter was $49.7 million, compared to $24.9 million in the previous year. Adjusted EBITDA from continuing operations improved to $66.0 million from $51.1 million.
The company completed various financing transactions, including a private equity investment and a rights offering, raising $95.0 million in new equity capital. The funds were used to deleverage the balance sheet and provide additional working capital.
Barnes & Noble Education continues to focus on its BNC First Day programs, which contributed significantly to sales growth. The company plans to expand these programs further in the coming fiscal year.
The filing also notes that the company has closed 119 stores and opened 36 new ones during the fiscal year, as part of its strategy to focus on more profitable locations.
Cash flows from operating activities were negative at $96.6 million for the first half of the fiscal year, primarily due to timing of receivables and payables related to the BNC First Day programs.
Barnes & Noble Education maintains that it has sufficient liquidity to meet its obligations, with $28.9 million in cash on hand and access to a $325.0 million credit facility.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Barnes & Noble Education Inc quarterly 10-Q report dated December 9, 2024. To report an error, please email earnings@qz.com.