Barnes & Noble Education underperformed again, with second quarter sales falling 8.1 percent to $815 million, and investors headed straight for the door. Ninety minutes after the market opening, shares were down approximately 28 percent, to about $4.60 a share, which would be a new all-time low for the stock if it holds. (At that price, the market cap is around $209 million.)
Sales at the College stores declined $54.4 million, with comparable store sales down 5.6 percent, “primarily due to lower textbook sales.” Sales from net new stores (new stores less closed stores) declined by $15.2 million, compared to an increase of $21.1 million in the prior year. MBS sales fell $15.9 million, or 11.8 percent, on “lower publisher rental penetration than anticipated, as well as lower net sales of traditional wholesale textbooks.”
CEO Mike Huseby says in the announcement, “During the first half of fiscal 2019, BNED accomplished significant milestones in its continued development of the digital services and offerings the industry is demanding. While we are pleased with the improvement in consolidated net income, our focus is on investing in digital growth platforms and offerings for the future while also taking steps to preserve current levels of profitability and cash flow.” The company said that its outlook for the full year is now “expected to be at the low end” of its guidance.