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Barnes & Noble Education's stock plummets after sales fall more than expected, outlook cut

Tomi Kilgore

Shares of Barnes & Noble Education Inc. plummeted 22% in morning trade Tuesday, enough to pace all NYSE-listed decliners, after the provider of educational products and services reported fiscal third-quarter revenue that fell more than expected and cut its full-year outlook. The company said it swung to a net profit of about $769,000, or 2 cents a share, from $283.2 million, or $6.04 a share, in the year-ago period, which included a $313.1 million impairment charge. Total sales fell 8.8% to to $550.3 million; the two analysts surveyed by FactSet expected revenue in the range of $585.9 million to $596.4 million. The acceleration from physical textbooks to digital offerings contributed to "somewhat higher than expected declines in revenue," said Chief Executive Michael Huseby. For fiscal 2019, the company cut its sales outlook to a range of $2.15 billion to $2.2 billion from $2.2 billion to $2.3 billion. The stock has still rallied 21% over the past three months, but has shed 25% over the past 12 months. In comparison, the S&P 500 has gained 3.3% the past three months and has tacked on 2.5% the past year.