Barnes & Noble Education has released final, audited financial results for the fiscal year ended April 27, 2024. The figures are nearly identical to he preliminary estimates released earlier this year, and show a 1.5% increase in sales, to $1.57 billion, and a net loss from continuing operations of $62.3 million, down from $90.1 million a year ago.
The new release also highlights two ongoing trends at B&NE: the growing importance of the equitable and inclusive access business models and the ongoing closure of underperforming stores. B&NE calls its equitable and inclusive access packages First Day Complete and First Day, respectively; the two combined to generate $473.9 million in sales in fiscal 2024, an increase of 37% over fiscal 2023. A total of 160 stores participated in the First Day programs in fiscal 2024, up from 116 one year ago.
Under equitable and inclusive access programs, students pay for all course materials as part of tuition or other fees. “Offering course materials sales through our equitable and inclusive access First Day Complete and First Day models is a key, and increasingly important, strategic initiative of ours to meet the market demands of substantially reduced pricing to students,” B&NE wrote in its 10-K filing with the Securities and Exchange Commission.
The jump in First Day revenue helped to offset declines in a la carte sales and the drop in the number of stores now operated by B&NE. The access models, however, face a drastic overhaul over new rules proposed by the Department of Education, which B&NE and large parts of the college community oppose.
During fiscal 2024, the total number of physical and virtual stores operated by B&NE fell from 1,366 outlets to 1,245 at the close of fiscal 2024, with 121 outlets closed or their leases returned to host colleges or universities. Even with the store closures, B&NE believes there is a major opportunity to have more colleges adopt its First Day program, provided that proposed regulatory changes don’t negatively impact equitable and inclusive access models across the higher education industry.
The release of its audited results and filing of its 10-K ends another turbulent period for B&NE. The period saw the company refinance its business, hire Jonathan Shar as CEO to replace Michael Huseby, revamp its board of directors, and implement a 1-for-100 reverse stock split.
