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Barnes & Noble Education posts quarterly miss

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Yahoo Finance’s Brian Sozzi, Alexis Christoforous, and Ines Ferre break down the market action for Barnes & Noble Education.

Video Transcript

BRIAN SOZZI: We're watching shares of Barnes & Noble Education this morning after the company posted a disappointing first quarter earnings report. Ines, we just had the CEO on a couple of weeks ago. Since then, they said they are going to stay a standalone company. They're no longer pursuing strategic alternatives, which makes their earnings reports much more important right now.

INES FERRE: That's right, and the company said that historically this latest quarter, its first quarter fiscal year, 2021 in this case, is historically a low revenue quarter, but the results this time were significantly impacted by COVID-19. Also, the company saying that a shift to remote learning accelerated growth of digital products, partially offsetting a decline from temporarily closed campus stores. It's first quarter sales decreased 36%, coming in with an adjusted loss of $41 million that's missing, Wall Street estimates. Online sales of general merchandise nearly doubled over the last year.

The company also has three reportable segments, just to break it down for you, retail, wholesale, and also digital student solutions. Retail sales, as you can expect, decreased 42%, wholesale increased 11%, and DSS, digital student solutions, increased 9.3%. Now, the company says that it saw strong growth in demand for Bartleby, this is a self studying offering, and Bartleby subscribers for the quarter tripled as compared to the prior year with revenue increasing 100%. But certainly, a tough quarter for Barnes & Noble Education. Historically, it's low revenue, but this time it was, of course, impacted by COVID-19.