Barnes & Noble Education, Inc. (NYSE: BNED), one of
the largest contract operators of bookstores on college and
university campuses across the United States and a leading provider
of digital education services, today reported sales and earnings
for the third quarter for fiscal 2017.
Financial highlights for the third quarter 2017 and fiscal
year to date 2017:
- Third quarter sales of $521.6 million
increased 0.6% as compared to the prior year period; year to date
sales of $1,531.5 million increased 1.2% as compared to the prior
year period.
- Third quarter comparable store sales
decreased 4.9%; year to date comparable store sales decreased
3.6%.
- Third quarter GAAP net income of $3.8
million, as compared to a net loss of $(3.6) million in the prior
year period; year to date net income was $5.1 million, as compared
to $2.9 million in the prior year period.
- Third quarter non-GAAP Adjusted EBITDA
of $18.8 million, a decrease of $5.4 million as compared to the
prior year period; year to date non-GAAP Adjusted EBITDA of $52.7
million, a decrease of $9.0 million as compared to the prior year
period.
- Third quarter non-GAAP Adjusted
Earnings of $4.0 million, as compared to $5.8 million in the prior
year period; year to date non-GAAP Adjusted Earnings of $7.8
million, as compared to $12.3 million in the prior year
period.
Operational highlights for the third quarter 2017:
- Completed expansion of price match
program to remaining textbook stores.
- Web sales increased for textbook and
general merchandise offerings, slowing the negative general
merchandise trend from the fall semester.
- Gained traction with Barnes & Noble
Education Courseware, with continued adoptions for the fall 2017
back to school selling season.
Comparable store sales decreased 4.9% for the quarter or $25.0
million, driven largely by lower textbook sales of $23.1 million.
Consistent with prior years, the Spring Rush period extended beyond
the quarter end due to later school openings and the continued
pattern of students buying course materials later in the semester.
Factoring in the three additional weeks of February, comparable
store sales decreased 3.3% on a year to date basis.
“In the third quarter, the trends we saw in the second quarter
continued, including lower enrollments, a competitive market for
textbook sales and a soft retail environment, all of which
contributed to comparable store sales declines. We have taken
decisive steps to address the dynamic market environment, including
expanding our price match program and enhancing our suite of
affordable learning materials with OER courseware,” said Max J.
Roberts, Chief Executive Officer, Barnes & Noble Education.
“We remain confident in our ability to capitalize on expected
long-term industry trends, including future enrollment growth, an
increasing focus on affordability and the evolution toward digital
solutions. We also continue to be well-positioned to build market
share, as more schools turn to outsourced bookstore operations. Our
acquisition of MBS Textbook Exchange, LLC (“MBS”), also announced
today, will accelerate our strategy, enabling us to generate more
value from the textbook marketplace, increase our addressable
market for bookstores and expand revenue opportunities for our
digital courseware and analytics. With MBS, we are better
positioned to broaden our reach and deepen our institutional
partnerships through our ability to provide unmatched access to a
comprehensive suite of flexible and affordable learning
solutions.”
Third Quarter 2017 Results
Results for the 13 and 39 weeks of fiscal 2017 and fiscal 2016
are as follows:
$ in millions 13 and 39 Weeks Selected
Data (unaudited)
13 Weeks
13 Weeks
39 Weeks
39 Weeks
Q3 2017 Q3 2016
2017
2016
Total Sales $521.6 $518.4 $1,531.5 $1,513.3 Net Income(Loss) $3.8
$(3.6) $5.1 $2.9
Non-GAAP((1))
Adjusted EBITDA $18.8 $24.2 $52.7 $61.7 Adjusted Earnings $ 4.0 $
5.8 $7.8 $12.3
(1) These non-GAAP financial measures have
been reconciled in the attached schedules to the most directly
comparable GAAP measure as required under SEC rules regarding the
use of non-GAAP financial measures.
Third quarter sales of $521.6 million increased $3.2 million, or
0.6%, as compared to the prior year period. This increase was
attributable to new store growth partially offset by lower
comparable store sales.
Third quarter net income was $3.8 million, or $0.08 per diluted
share, compared to net loss of $(3.6) million, or $(0.07) per
diluted share, in the prior year period. The current year’s fiscal
quarter has 46.8 million diluted shares outstanding, while the
prior year period had 48.1 million diluted shares outstanding. The
Company reported non-GAAP Adjusted Earnings of $4.0 million during
the quarter, compared with $5.8 million in the prior year
period.
The Company’s Adjusted EBITDA was $18.8 million for the quarter,
as compared to $24.2 million in the prior year period, due
primarily to lower comparable store sales.
Outlook
For fiscal year 2017, the Company expects total sales to grow by
approximately 2.5%, while comparable store sales are expected to
decrease by approximately 3.0% compared to the prior year. The
Company expects Adjusted EBITDA to increase on a percentage basis
in the mid-single digits compared with the prior year and expects
capital expenditures to be approximately $40 million.
Note: These expected results for fiscal 2017 exclude financial
results for MBS from the date of the acquisition to April 29, 2017
and any transaction and integration costs.
Conference Call
A conference call with Barnes & Noble Education, Inc. senior
management will be webcast at 10:00 a.m. Eastern Time on Tuesday,
February 28, 2017 and can be accessed at the Barnes & Noble
Education, Inc. corporate website at www.bned.com.
Barnes & Noble Education, Inc. expects to report fiscal 2017
fourth quarter results on or about July 12, 2017.
ABOUT BARNES & NOBLE EDUCATION, INC.
Barnes & Noble Education, Inc. (NYSE: BNED), one of the
largest contract operators of bookstores on college and university
campuses across the United States and a leading provider of digital
education services, enhances the academic and social purpose of
educational institutions. Through its Barnes & Noble College
and MBS subsidiaries, Barnes & Noble Education operates 1,490
physical and virtual bookstores and serves more than 6 million
students enrolled in higher education institutions, delivering
essential educational content and tools within a dynamic retail
environment. Through its Digital Education subsidiary, Barnes &
Noble Education offers a suite of digital software, content and
services that include a sophisticated digital learning management
platform that has competency-based features, analytics
capabilities, courseware offerings and a digital eTextbook reading
product. Barnes & Noble Education acts as a strategic partner
to drive student success; provide value and support to students and
faculty; and create loyalty and improve retention, all while
supporting the financial goals of college and university
partners.
General information on Barnes & Noble Education, Inc. can be
obtained by visiting the Company's corporate website:
www.bned.com.
Forward-Looking Statements
This press release contains certain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995 and information relating to us and our business that are
based on the beliefs of our management as well as assumptions made
by and information currently available to our management. When used
in this communication, the words “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “plan,” “will,” “forecasts,”
“projections,” and similar expressions, as they relate to us or our
management, identify forward-looking statements. Moreover, we
operate in a very competitive and rapidly changing environment. New
risks emerge from time to time. It is not possible for our
management to predict all risks, nor can we assess the impact of
all factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
we may make. In light of these risks, uncertainties and
assumptions, the future events and trends discussed in this press
release may not occur and actual results could differ materially
and adversely from those anticipated or implied in the
forward-looking statements. Such statements reflect our current
views with respect to future events, the outcome of which is
subject to certain risks, including, among others: general
competitive conditions, including actions our competitors may take
to grow their businesses; a decline in college enrollment or
decreased funding available for students; decisions by colleges and
universities to outsource their bookstore operations or change the
operation of their bookstores; the general economic environment and
consumer spending patterns; decreased consumer demand for our
products, low growth or declining sales; our ability to
successfully integrate the operations of MBS into our Company; the
anticipated benefits of the MBS acquisition may not be fully
realized or may take longer than expected; the integration of MBS’s
operations into our own may also increase the risk of our internal
controls being found ineffective; restructuring of our digital
strategy may not result in the expected growth in our digital sales
and/or profitability; risk that digital sales growth does not
exceed the rate of investment spend; the performance of our online,
digital and other initiatives, integration of and deployment of,
additional products and services, and further enhancements to Yuzu®
and any future higher education digital products, and the inability
to achieve the expected cost savings; our ability to successfully
implement our strategic initiatives including our ability to
identify and execute upon additional acquisitions and strategic
investments; technological changes; our international expansion
could result in additional risks; our ability to attract and retain
employees; changes to payment terms, return policies, the discount
or margin on products or other terms with our suppliers; risks
associated with data privacy, information security and intellectual
property; trends and challenges to our business and in the
locations in which we have stores; non-renewal of contracts and
higher-than-anticipated store closings; disruptions to our computer
systems, data lines, telephone systems or supply chain, including
the loss of suppliers; work stoppages or increases in labor costs;
possible increases in shipping rates or interruptions in shipping
service, effects of competition; obsolete or excessive inventory;
product shortages; changes in law or regulation; the amount of our
indebtedness and ability to comply with covenants applicable to any
future debt financing; our ability to satisfy future capital and
liquidity requirements; our ability to access the credit and
capital markets at the times and in the amounts needed and on
acceptable terms; adverse results from litigation, governmental
investigations or tax-related proceedings or audits; changes in
accounting standards; challenges to running our company
independently from Barnes & Noble, Inc. following the Spin-Off;
the potential adverse impact on our business resulting from the
Spin-Off; and the other risks and uncertainties detailed in the
section titled “Risk Factors” in Part I - Item 1A in our Annual
Report on Form 10-K for the year ended April 30, 2016. Should one
or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results or outcomes
may vary materially from those described as anticipated, believed,
estimated, expected, intended or planned. Subsequent written and
oral forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the cautionary statements in this paragraph. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise after the date of this press release.
EXPLANATORY NOTE
On February 26, 2015, Barnes & Noble, Inc.
(“Barnes & Noble”) announced plans for the complete legal and
structural separation of Barnes & Noble Education, Inc. (the
“Company”) from Barnes & Noble (the “Spin-Off”). Under the
Separation and Distribution Agreement between Barnes & Noble
and the Company, Barnes & Noble distributed all of its
equity interest in the Company, consisting of all of the
outstanding shares of the Company's Common Stock, to
Barnes & Noble’s stockholders on a pro rata basis.
On July 14, 2015, Barnes & Noble approved the final
distribution ratio and declared a pro rata dividend of the
outstanding shares of the Company's Common Stock, par value $0.01
per share ("Common Stock"), to Barnes & Noble’s existing
stockholders. The pro rata dividend was made on August 2, 2015 to
the Barnes & Noble stockholders of record (as of July 27,
2015). Each Barnes & Noble stockholder of record received a
distribution of 0.632 shares of the Company's Common Stock for each
share of Barnes & Noble common stock held on the record date.
Following the Spin-Off, Barnes & Noble does not own any
equity interest in the Company.
On August 2, 2015, the Company completed the legal separation
from Barnes & Noble, at which time the Company began to operate
as an independent publicly-traded company. The Company's Common
Stock began to trade on a “when-issued” basis on the NYSE under the
symbol “BNED WI” beginning on July 23, 2015. On August 3, 2015,
when-issued trading of the Company's Common Stock ended, the
Company's Common Stock began “regular-way” trading under the symbol
“BNED.”
The results of operations for the 13 weeks ended August 1, 2015
reflected in the Company's condensed consolidated financial
statements are presented on a stand-alone basis since the Company
was still part of Barnes & Noble, Inc. until the consummation
of the Spin-Off on August 2, 2015, and the results of operations
for the 13 and 39 weeks ended January 28, 2017 and the 26 weeks
ended January 30, 2016 reflected in the Company's condensed
consolidated financial statements are presented on a consolidated
basis as the Company became a separate consolidated entity.
BARNES & NOBLE EDUCATION, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of
Operations
(In thousands, except per share
data)
(Unaudited)
13 weeks ended 39 weeks ended January
28,2017 January 30,2016 January 28,2017 January
30,2016 Sales: Product sales and other $ 457,147 $ 457,126 $
1,372,810 $ 1,359,848 Rental income 64,477 61,297
158,722 153,422 Total sales 521,624 518,423
1,531,532 1,513,270 Cost of sales: Product and other cost of
sales 366,190 361,030 1,098,682 1,073,319 Rental cost of sales
39,509 36,753 97,998 92,646 Total cost of
sales 405,699 397,783 1,196,680 1,165,965
Gross profit 115,925 120,640 334,852 347,305
Selling and administrative expenses 97,111 96,453 282,171 285,557
Depreciation and amortization expense 13,149 13,081 39,057 39,350
Transaction costs 467 783 2,638 802 Restructuring costs (a) — 774
1,790 774 Impairment loss (non-cash) (a) — 11,987 —
11,987 Operating income (loss) 5,198 (2,438 ) 9,196 8,835
Interest expense, net 679 711 1,975 1,268
Income (Loss) before income taxes 4,519 (3,149 ) 7,221 7,567 Income
tax expense 758 454 2,087 4,687 Net income
(loss) $ 3,761 $ (3,603 ) $ 5,134 $ 2,880
Earnings (Loss) per common share: Basic $ 0.08 $ (0.07 ) $ 0.11 $
0.06 Diluted $ 0.08 $ (0.07 ) $ 0.11 $ 0.06 Weighted average common
shares outstanding: Basic 46,276 48,088 46,265 45,907 Diluted
46,844 48,088 46,716 46,173 (a) For additional information,
see Note (a) in the Non-GAAP disclosure information of this Press
Release.
Non-GAAP Disclosures: (a) Adjusted
Earnings $ 4,047 $ 5,841 $ 7,848 $ 12,336 Adjusted EBITDA $ 18,814
$ 24,187 $ 52,681 $ 61,748 (a) For additional information,
see the Non-GAAP disclosure information of this Press Release.
13 weeks ended 39 weeks
ended January 28,2017 January 30,2016 January 28,2017
January 30,2016
Percentage of sales: Sales: Product sales
and other 87.6 % 88.2 % 89.6 % 89.9 % Rental income 12.4 % 11.8 %
10.4 % 10.1 % Total sales 100.0 % 100.0 % 100.0 % 100.0 % Cost of
sales: Product and other cost of sales (a) 80.1 % 79.0 % 80.0 %
78.9 % Rental cost of sales (a) 61.3 % 60.0 % 61.7 % 60.4 % Total
cost of sales 77.8 % 76.7 % 78.1 % 77.0 % Gross profit 22.2 % 23.3
% 21.9 % 23.0 % Selling and administrative expenses 18.6 % 18.6 %
18.4 % 18.9 % Depreciation and amortization expense 2.5 % 2.5 % 2.6
% 2.6 % Transaction costs 0.1 % 0.2 % 0.2 % 0.1 % Restructuring
costs — % 0.1 % 0.1 % 0.1 % Impairment loss (non-cash) — % 2.3 % —
% 0.8 % Operating income (loss) 1.0 % (0.4 )% 0.6 % 0.5 % Interest
expense, net 0.1 % 0.1 % 0.1 % 0.1 % Income (Loss) before income
taxes 0.9 % (0.5 )% 0.5 % 0.4 % Income tax expense 0.1 % 0.1 % 0.1
% 0.3 % Net income (loss) 0.8 % (0.6 )% 0.4 % 0.1 % (a)
Represents the percentage these costs bear to the related sales,
instead of total sales.
BARNES & NOBLE EDUCATION, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(In thousands, except per share
data)
(Unaudited)
January 28,2017 January 30,2016
ASSETS Current assets: Cash and cash equivalents $ 132,061 $
108,162 Receivables, net 178,825 183,133 Merchandise inventories,
net 494,032 542,489 Textbook rental inventories 67,372 65,757
Prepaid expenses and other current assets 8,134 5,754
Total current assets 880,424 905,295 Property and
equipment, net 107,272 113,504 Intangible assets, net 191,628
190,549 Goodwill 281,346 274,070 Other noncurrent assets 39,233
33,635 Total assets $ 1,499,903 $ 1,517,053
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable $ 480,378 $ 488,984 Accrued liabilities 207,731
199,655 Total current liabilities 688,109
688,639 Long-term deferred taxes, net 22,709 39,831 Other
long-term liabilities 76,196 69,937 Total liabilities
787,014 798,407 Commitments and contingencies — —
Stockholders' equity: Preferred stock, $0.01 par value; authorized,
5,000 shares; issued and outstanding, none — — Common stock, $0.01
par value; authorized, 200,000 shares; issued, 48,972 and 48,294
shares, respectively; outstanding, 46,276 and 47,346 shares,
respectively 490 483 Additional paid-in-capital 706,736 697,662
Retained earnings 32,136 29,798 Treasury stock, at cost (26,473 )
(9,297 ) Total stockholders' equity 712,889 718,646
Total liabilities and stockholders' equity $ 1,499,903 $
1,517,053
BARNES & NOBLE EDUCATION, INC.
AND SUBSIDIARIES
Earnings (Loss) Per Share
(In thousands, except per share
data)
(Unaudited)
13 weeks ended 39 weeks ended
January 28,2017 January 30,2016 January 28,2017
January 30,2016
Numerator for basic earnings per share: Net
income (loss) $ 3,761 $ (3,603 ) $ 5,134 $ 2,880 Less allocation of
earnings to participating securities (1 ) — (3 ) (9 ) Net
income (loss) available to common shareholders $ 3,760 $
(3,603 ) $ 5,131 $ 2,871
Numerator for
diluted earnings per share: Net (loss) income available to
common shareholders $ 3,760 $ (3,603 ) $ 5,131 $ 2,871 Allocation
of earnings to participating securities 1 — 3 9 Less diluted
allocation of earnings to participating securities (1 ) — (3
) (9 ) Net income (loss) available to common shareholders $ 3,760
$ (3,603 ) $ 5,131 $ 2,871
Denominator for basic earnings per share: Basic weighted
average common shares (a) 46,276 48,088 46,265
45,907
Denominator for diluted earnings per
share: (a)(b) Basic weighted average common shares
46,276 48,088 46,265 45,907 Average dilutive restricted stock units
512 — 397 247 Average dilutive performance shares 52 — 33 — Average
dilutive restricted shares 4 — 21 — Average dilutive options —
— — 19 Diluted weighted average common
shares 46,844 48,088 46,716 46,173
Earnings (Loss) per common share: Basic $ 0.08 $
(0.07 ) $ 0.11 $ 0.06 Diluted $ 0.08 $ (0.07 ) $ 0.11 $ 0.06
(a) For periods prior to the Spin-Off from Barnes & Noble on
August 2, 2015, Basic earnings per share and weighted-average basic
shares outstanding are based on the number of shares of Barnes
& Noble common stock outstanding as of the end of the period,
adjusted for an assumed distribution ratio of 0.632 shares of the
Company's Common Stock for every one share of Barnes & Noble
common stock held on the record date for the Spin-Off. (b)
For periods prior to the Spin-Off from Barnes & Noble on August
2, 2015, Diluted earnings per share and weighted-average diluted
shares outstanding reflect potential common shares from Barnes
& Noble equity plans in which the Company's employees
participated based on the distribution ratio.
BARNES & NOBLE EDUCATION, INC.
AND SUBSIDIARIES
Non-GAAP Information
(In thousands)
(Unaudited)
Adjusted Earnings 13
weeks ended 39 weeks ended January 28, 2017 January 30, 2016
January 28, 2017 January 30, 2016 Net income (loss) $ 3,761
$ (3,603 ) $ 5,134 $ 2,880 Reconciling items, after-tax (below) 286
9,444 2,714 9,456 Adjusted Earnings (Non-GAAP)
$ 4,047 $ 5,841 $ 7,848 $ 12,336
Reconciling items, pre-tax Transaction costs (a) $ 467 $ 783 $
2,638 $ 802 Restructuring costs (b) — 774 1,790 774 Impairment loss
(non-cash) (b) — 11,987 — 11,987 Reconciling
items, pre-tax 467 13,544 4,428 13,563 Less: Pro forma income tax
impact (c) 181 4,100 1,714 4,107 Reconciling
items, after-tax $ 286 $ 9,444 $ 2,714 $ 9,456
Adjusted EBITDA 13 weeks ended 39 weeks ended
January 28, 2017 January 30, 2016 January 28, 2017 January 30, 2016
Net income (loss) $ 3,761 $ (3,603 ) $ 5,134 $ 2,880 Add:
Depreciation and amortization expense 13,149 13,081 39,057 39,350
Interest expense, net 679 711 1,975 1,268 Income tax expense 758
454 2,087 4,687 Transaction costs (a) 467 783 2,638 802
Restructuring costs (b) — 774 1,790 774 Impairment loss (non-cash)
(b) — 11,987 — 11,987 Adjusted EBITDA
(Non-GAAP) $ 18,814 $ 24,187 $ 52,681 $ 61,748
(a) Transaction costs are costs incurred for business development
and acquisitions. Prior to the third quarter of Fiscal 2017,
transactions costs were included in selling and administrative
expenses in the condensed consolidated statement of operations.
(b) In Fiscal 2016, we implemented a plan to restructure our
digital operations. As a result of this restructuring, we recorded
a non-cash impairment loss totaling $12 million ($8.5 million net
of tax benefit), related to all of the capitalized content costs
for the Yuzu® eTextbook platform ($9 million), and recorded a
non-recurring other than temporary loss related to an investment
held at cost ($3 million) during the 13 and 39 weeks ended January
30, 2016. Additionally, we announced a reduction in staff
and closure of the facilities in Mountain View, California, and
Redmond, Washington, that support the Yuzu® eTextbook platform. We
recorded restructuring costs of $8.8 million in Fiscal 2016
comprised of employee-related costs (including severance and
retention) and facility exit costs. During the 39 weeks ended
January 28, 2017, we recorded $1.8 million in additional
restructuring costs primarily for employee related costs (including
severance and retention). The majority of the restructuring related
to employee matters was completed in the first quarter of Fiscal
2017. (c) The amounts shown represent the projected
reduction in income tax expense based on the Company's current
combined federal and state aggregate income tax rate.
Use
of Non-GAAP Financial Information - Adjusted Earnings and Adjusted
EBITDA To supplement the Company’s condensed
consolidated financial statements presented in accordance with
generally accepted accounting principles (“GAAP”), in the Press
Release attached hereto as Exhibit 99.1, the Company uses the
non-GAAP financial measures of Adjusted Earnings (defined as Net
Income adjusted for certain reconciling items) and Adjusted EBITDA
(defined by the Company as earnings before interest, taxes,
depreciation and amortization, as adjusted for additional items
subtracted from or added to net income). These non-GAAP
financial measures are not intended as substitutes for and should
not be considered superior to measures of financial performance
prepared in accordance with GAAP. In addition, the Company's use of
these non-GAAP financial measures may be different from similarly
named measures used by other companies, limiting their usefulness
for comparison purposes. These non-GAAP financial measures should
not be considered as alternatives to net income as an indicator of
the Company's performance or any other measures of performance
derived in accordance with GAAP. The Company's management
reviews these Non-GAAP financial measures as internal measures to
evaluate the Company's performance and manage the Company's
operations. The Company's management believes that these measures
are useful performance measures which are used by the Company to
facilitate a comparison of on-going operating performance on a
consistent basis from period-to-period. The Company's management
believes that these Non-GAAP financial measures provide for a more
complete understanding of factors and trends affecting the
Company's business than measures under GAAP can provide alone, as
it excludes certain items that do not reflect the ordinary earnings
of its operations. The Company's Board of Directors and management
also use Adjusted EBITDA as one of the primary methods for planning
and forecasting overall expected performance, for evaluating on a
quarterly and annual basis actual results against such
expectations, and as a measure for performance incentive plans. The
Company's management believes that the inclusion of Adjusted EBITDA
and Adjusted Earnings results provides investors useful and
important information regarding the Company's operating results.
The non-GAAP measures included in the Press Release attached
hereto as Exhibit 99.1 has been reconciled to the comparable GAAP
measures as required under Securities and Exchange Commission (the
“SEC”) rules regarding the use of non-GAAP financial measures. All
of the items included in the reconciliations below are either (i)
non-cash items or (ii) items that management does not consider in
assessing the Company's on-going operating performance. The Company
urges investors to carefully review the GAAP financial information
included as part of the Company’s Form 10-K dated April 30, 2016
filed with the SEC on June 29, 2016, which includes consolidated
financial statements for each of the three years for the period
ended April 30, 2016 (Fiscal 2016, Fiscal 2015, and Fiscal 2014),
the quarterly earnings release for the period ended July 30, 2016
included as part of the Company's Form 8-K dated September 8, 2016
and filed with the SEC on that date, and the Company's Quarterly
Report on Form 10-Q for the period ended October 29, 2016 filed
with the SEC on December 6, 2016.
BARNES & NOBLE EDUCATION, INC.
AND SUBSIDIARIES
Sales Information
(In millions)
(Unaudited)
Total Sales
The components of the sales variances for
the 13 and 39 week periods are as follows:
13 weeks ended 39 weeks ended New stores (a) $ 34.2 $
92.7 Closed stores (a) (8.0 ) (20.6 ) Comparable stores (25.0 )
(53.5 ) Textbook rental deferral 2.3 0.1 Other revenue (b) 0.9 3.3
Other (c) (1.2 ) (3.8 ) Total sales variance $ 3.2 $ 18.2
(a) We added 36 new stores and closed 17 stores during the 39
weeks ended January 28, 2017, ending the period with a total
of 770 stores.
(b) Other revenue includes Promoversity, LoudCloud, brand
partnerships, shipping & handling and revenue from other
programs.
(c) Other includes certain adjusting items related to return
reserves and other deferred items.
Comparable Sales
Comparable store sales variances by
category for the 13 and 39 week periods are as follows:
13 weeks ended 39 weeks ended January 28, 2017
January 30, 2016 January 28, 2017 January 30, 2016
Textbooks $ (23.1 ) (6.1 )% $ (21.4 ) (5.4 )% $ (49.0
) (4.6 )% $ (49.3 ) (4.6 )% General Merchandise (0.5
) (0.5 )% 0.6 0.5 % (1.2 ) (0.3 )% 9.8 2.5 % Trade Books (1.2 )
(8.3 )% — 0.3 % (2.7 ) (6.2 )% 0.5 1.1 % Other (0.2 ) (86.7 )% (1.3
) (90.6 )% (0.6 ) (88.3 )% (2.0 ) (73.3 )% Total Comparable Store
Sales $ (25.0 ) (4.9 )% $ (22.1 ) (4.1 )% $ (53.5 ) (3.6 )% $ (41.0
) (2.7 )%
Effective for the first quarter of Fiscal 2017, comparable store
sales includes sales from stores that have been open for an entire
fiscal year period, does not include sales from closed stores for
all periods presented, and digital agency sales are included on a
gross basis. We believe the current comparable store sales
calculation method better reflects the manner in which management
views comparable sales, as well as the seasonal nature of our
business. For periods presented prior to the first quarter of
Fiscal 2017, comparable store sales includes sales from stores that
have been open for at least 15 months, does not include sales from
closed stores for all periods presented, and includes digital
agency sales on a net basis.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170228005549/en/
Media:Barnes & Noble
Education, Inc.Carolyn J. Brown, 908-991-2967Vice
PresidentCorporate Communicationscbrown@bned.comorInvestors:Barnes & Noble Education,
Inc.Thomas Donohue, 908-991-2966Vice PresidentTreasurer and
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