Barnes & Noble Education, Inc. (NYSE:BNED) Tuesday posted worse-than-expected sales and earnings for the fiscal second quarter, making the stock fall more than 16 percent. The college bookstore posted a profit of $29.3 million, or 63 cents a share, in the fiscal second quarter, compared with $33.4 million, or 69 cents a share, a year earlier. The result missed analysts’ estimate. Analysts had projected adjusted earnings of 78 cents per share.
Overall Sales rose 2 percent to $770.67 million, boosted by sales from 34 new store openings. But comparable store sales fell 2.9 percent during the quarter as a softer retail environment hurt the company.
“Though our new business wins enabled us to grow total sales, comparable store sales declined as a result of lower enrollments and a softer retail environment,” said Max J. Roberts, Chief Executive Officer, Barnes & Noble Education.
The stock fell as much as 15 percent to $9.87 in New York. The company now expects same-store sales to fall between 2 percent and 3 percent. For the full fiscal year, it expects revenue to grow between 3 percent and 4 percent.
“Since we experienced lower textbook and general merchandise sales on our campuses, we are continuing the roll out of our price matching program and adjusting our promotional strategy in a targeted and disciplined manner to reflect current market conditions, and are continuing our cost management initiatives across the company. Consistent with this performance, we have revised our financial guidance to reflect the possibility that general merchandise sales remain softer than expected this fiscal year.” Roberts said.