BNED - Earnings call transcript Q1 2021 | Barnes & Noble Education, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Barnes & Noble Education Fiscal 2021 First Quarter Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to Mr. Andy Milevoj. Please go ahead.

Andy Milevoj

Good morning, and welcome to our fiscal 2021 first quarter earnings call.

Barnes Mike Executive and and Student Vice Lisa President are CFO; Tom Client Solutions; today Kanuj Malat, Shar, College; President Jonathan President of and us David Huseby, of of Chairman; CEO Donohue, Solutions; Malhotra, Henderson, Joining President Noble MBS. Digital & BNED Retail

public we Safe begin call and are of today's not use contents the to prior and other Harbor of Before & are Barnes press on & property contained documents. I'd we The our Barnes remind you by without this the make like call, that disclaimer in the the statements for covered Noble call Noble party Education. written of Education by are consent or rebroadcast any release

with we Exchange this and those to call. make statements I'll our predictions, release made Huseby. during that and These will future discussed the forward-looking events. and assumptions with the statements call risks or other including contained turn Securities may any company public to are subject Commission. disclaims about and call, And based current obligation projections statements forward-looking update and Mike filings uncertainties, be that in During upon expectations to any over statements this The now, press are

Mike Huseby

its Thanks On business legal board concluded determined extensive to our review Andy, and consultation significant the path review execution evaluation strategic to business current continued our proposed the which shift is to with digital financial and transformation after our in At process significant importance directors this company the to and company begin and after XX, BNED's the it advisors, of review its enhanced learning. unanimously strategic update same gave business. the company's of commenced, deliberation remote board of progress provide the COVID-XX shareholders. rise After relevance us thank the strategy, like opportunities. also Shortly the that and COVID-XX and the challenges this you that review. toward of further conclusion announced through made and emerged, all then by I'd company's brief forward morning. for particularly joining for on pandemic time, providing strategic best a August the and which I'll executing implementing the customers, had its plan its

I'll MBS its high DSS business business, revenue discuss and and has digital course remote grown its BNC adoptions added our strengthened recent capabilities Complete eCommerce general new We've Day our release As improved improved new Day, share further models. from platform. detail, fulfillment business leveraged our in BNC and through other successfully wins, and BNED material First of virtual merchandise First new with margin the of

enhanced As place strategy deliver we move we confident right to the for that shareholders. in our have forward, we are value

believe continue have COVID-XX. we of sources we to to the Importantly, of impact sufficient liquidity continued that manage through

shareholder value are and and focused build and drive strategic long-term during very creation. execute this preservation, allocation to balancing our plan liquidity sustainable carefully challenging while our continue We on are liquidity we momentum capital to preserving time

entered cooperation toward July, of Capital. our a to agreement Additionally, pleased the end have were we with shareholder, Outerbridge largest into

nominated effective rethink the campuses shutdown environment. on protecting they Robinson now the certain learning a to expected students and to education of in customary first turn to the many in board. Capital And the faculty is remote now, to spring, As be agreed students, let's their to and which the navigate October Levenick favor performance. have provisions continue staff. COVID-XX persons abide After company directors, our Zachary an provide Outerbridge Meeting, nominate of vote Annual the by of joined as to agreement, has health that by XX. XXXX Schools quarter and of face challenges home as part for they board Lowell agreed our had and while to our sending unprecedented of having for standstill ongoing how held to candidate

they effect plus students institutions due impacted of by the lower that gap international at fewer fall or years of cancellation and to revenue. being the enrollments source important intercollegiate sports are Additionally, students, an are postponement many taking of

crucial These quarter. enable students, to of their strategic focused deliver complex, our the customizable digital While we access, affordability choose colleges our offerings, schools are became flexible have the investments us solutions our they bring to operations made whether has solutions, solutions campus never been faced unique remote fulfill students investments set they and evident stores and more have by campus, during to have to incorporate challenges are hybrid support and allowed us to provide missions. strength for improving implement first the back The or on a learning This very model. our assets than of help today. achievement in eCommerce warehouse partnerships to partners

by of many the is primarily first was the you of know, quarter were our results quarter said for a quarter further line low impact consisting ongoing COVID-XX our which that, the with As courses, in the exacerbated Having typically revenue expectations. company, summer of first pandemic.

liquidity both enabled our discuss further bottom cost our our expectations, us with and financial efforts, to which reduction will solid Tom maintain we detail As level. top during in coupled review, the line met

current as results response are of encouraged of schools to we end experienced Rush students be all the earlier campus timing COVID-XX the semester this to believe returned may plans early as this environment. by Fall We a with we've to earlier today. number due in year to some Additionally, well,

health first Impact remote of study, campus transition and students in they learning sudden with as to the their shift the partners our and learning. quarter, faculty of their on environments. students the focused safety During recent our XX% to and on support research communities Learning, struggled pivoted In quickly we COVID

Day First benefited for this result. are and type environment a DSS and Our offerings suited perfectly of as

which in The CSS, by sudden a course entire increase sales that program, usage access in capabilities students experienced the and and for provides significant Custom growing which Leveraging I the online savings they is universities on for MBS' courseware over as as inclusive model. to high that College quickly Stores colleges losses digital has also enrollment to revenue experienced due our relevant and able distribution of Day First individual we sources presented and set fulfill further. increase they them through orders a significant Noble subscribers, Solutions we're increasingly institutions on demand DSS quarter. CSS fee to learning the to a was wherever class, to were our Our the charged with revenue, delivery transitioned MBS' to shipping directly able material advanced discuss Barnes the solve. unique during or course shift business shared to of will warehouse for level, model Store challenge placed look XXX% capabilities, Through students eTextbooks, XXX to websites seamlessly school were. & At warehouse, our become offset pandemic. MBS' BNC

business, We a an the pipeline business of for new million $XX new continue see estimated signing to strong in quarter.

realities students universities revenue well ready beyond. Importantly, and and and as are streams for deliver economic through and colleges solutions to with institutions to we new this challenging year, and positioned help of challenging education custom these struggle times the

campus models pandemic. to the wake quarter their partners ongoing look to students semester, to and in campus the of of communities protect many and their fall continue have the our second the we learning As adapted

to revenue put incredibly three While year-over-year tools. XX something and to models chosen on seeking is on-demand two increased we tools semester some in-person left place, set to digital offering continue important are shorten for of predicted for compared expand right partners are and quarter to then actively students learning colleges few centers increasing Bartleby to students support campus just with learning, BNED and years support office need this resources grow. fall for With the many they our solutions schedules, in services, expect knew tripled hybrid returning robust our Clearly, fall, traffic. learn, support the could be library We have now. how Student bartleby learning. supplement have not our across that learning resources Data both it. doing Brands continues universities past or XX/X digital support XXX%. wherever of already suite to today's to provides online we whenever different we virtual critical would in fully over learning of subscribers launched have and were critical Bartleby students, the students we to hours year limited their hybrid offered our their Peak businesses. write, almost need bartleby writing peak our these times prior as relevant and more our versus months. students bartleby with solutions When the and on-demand have its to the with others come equipped will or students included to Reduced thanks DSS access environment. Q&A is tools that typically needs, accessibility a which that and Regardless even fully times spring traffic their ago, on-demand beginning available adding tutoring writing help important for model.

VitalSource we store While this new of reduced increase further to bartleby increased expanded our in seeing POS the announced sales, the of distribution store sales sourcing partnership our for bartleby outside will traffic channels on our BNED our of campus negatively bartleby with our footprint. impact are an services Earlier stores web we distribution month, outside suite footprint.

learn is We purchased with $XX.XX available eBook a the access, of of a now only VitalSource our qualifying bartleby purchase study for write bartleby $XX to are bartleby if channel direct-to-student value and of The unique products. VitalSource students bundle offering separately. the customers bundle and

strategic distribution long-term platform. VitalSource, all ecosystem very and excited grow with digital are network combining to relevant We solutions of VitalSource's with highly our industry-leading partnership bartleby's eBook

of millions way Further education recently leverages support Blackboard, the a leading supporting a strengths market-leading will reach we and of a nationwide. in partnership the The company students edtech into in will details unique center with differentiated students partnership both Additionally, companies. for be around fall. and that entered to released

expert unique solutions distribution easier the continue we it as devices. suite for app, customers make support Q&A textbook students' environment. reopened to students we know available immense and help, And and current content, recently and vast content have on to to particularly the expand light making on-campus of in back our mobile of stores homework mobile ways our majority are value will We for bartleby The to these solutions our rolled campus. of to deliver our bartleby to products access explore students, welcoming out

option the guidelines, measures, we payment to contactless following focus implemented local and health including protect a for employees strategies safety people of mandatory and schedule such digital implemented CDC mobile of shopping and safe detailing personal pickup complete reopening the stores well-being our an on to plan, new customers and advance quickly in the services. our customers. With safety communities, and and as curbside and events We

of proud a truly continuous basis. managers central our to them service our are for and the schools ensure teams of level in store on field and those have We ways our support a offices and pivoted with supporting customized high

made We continuing depending launched the new rollout in XX% continue - platform more in our to which shopping XX online who The officially investments have than experience are ever. fiscal customers as seamless sales our provides year which QX quarter compared referenced for in of now hyperlocal our a a the to of our hyperpersonal, channel, XXXX. platform, our see We're XX% eCommerce first experience a eCommerce total eCommerce represented of strength on we ago.

growth improved our margin the interface expect general business. stimulate online shopping of and We experience to merchandise high user

site the our to we're across excited this entire alike. new partners shoppers platform see out throughout extremely next received and have Our feedback from few months. campus And footprint positive rolling

serve and Importantly, BNC that strength allow campus our and lies MBS' and do combined individual has each values for we each to partner. ability campus assets people adapt needs, our us recognized to The we in different that. just of

online a all students our And either teams season, we Our Rush virtual. they on-demand a with job the still stores. done with of busy our each they now in physical serve, communities tools phenomenal faculty need into store offerings, our successful together they Fall early very back are to fit campus semester. excited needs to customizing the programs for have and equipping and We're DSS' or physical campus the welcome are unique but

we'll we environment. we As business significantly year. expect to take remain costs actions to our and impact more noted and this prudently costs reduce fiscal focused We this operate COVID continue highly previously, on to have efficiently managing continue in to

liquidity remain this which BNED our Tom the students for time. work expected fall over I Our our growth continue a focus is, to critical and turn again, environment, with our their have the will every structure all And team We grateful financial key initiatives ahead. success. substantially our long-term hard successful and member providing and continued and us to operating that, so wish adapted for ample With cost to of the teams financial reflect campus it the current to partners of stores, during review. term momentum to

Tom Donohue

Thanks fiscal be XXXX. August weeks, to noted. X, XXXX, quarter quarter Mike. of comparisons Please ended that first of on will note the unless the of fiscal XXXX otherwise XX All first consisting

our first The line were low significantly said, COVID-XX-related revenue closures. by quarter with our a results came in campus being historically period our is impacted sales That and expectations.

the of year. the wholesale million $XXX.X decrease Day mitigate uninterrupted and importantly, to and shift model, bookstore million comparable model, adopted compared The million from $XXX.X situation. and to to in continuously the decline. the and highlighted, enabled increase majority our remote million the leading $X.X million our during were the Most bookstores sales from As provide decline. digital CSS to a First offerings, sales This retail a $XXX.X $XXX us and Mike for our included in of to and partially from including very a first DSS, XX.X% offerings, able virtual which flexible or Total segment fluid evolving segment comprised quarter DSS campus million learning schools the decrease with service is partners we were $X sales closed was increase XX% what a of segment. stores our retail were quarter prior

eCommerce far Our overall was includes This in store mitigated performance, XX.X%, impacted which declining than comparable more material of closures XX.X%. sales course fared better declining was by merchandise our somewhat absence the general and our our business, by while food, clothing sales. students,

digital the eCommerce next Day the We to and revenue doubled shift lower as generation Bartleby to million, million XXX% our incorporates online increased we quarter. is fee, the $XX.X tuition improvement course expect segment BNC's for Net platform. sales XX% during by sales million X.X% of grew into and somewhat which the $X.X million, further cost roll faculty million. grew Brands or First offering, or business. and $X sales lower due a decline to materials out the by adopted mix. benefiting the to CSS model the $X.X growth Student returns million allowances sales X.X% to declined benefiting Brands $X.X from offset in million from while to subscriptions, DSS $X.X in Student revenue $X.X bartleby subscriptions wholesale to

Rush We our first have have and the weeks. we've few experienced results been entered over the now Fall period encouraged by

campus of cancelled business. As some traffic benefited to expect headwinds quarter impact Mike store students general diminished in stated, earlier schools merchandise later be than our may many sales benefit returning some that events to do as and We and from this our with coupled will the normal. timing due sporting

be for the to to workforce rate elimination from cost shift reduction These products in efforts higher to quarter we period. year This the contract in including and fiscal as took renegotiate decline was To quarter, million year of offset spend. XX.X% million enabled period. At administrative compared There borrowing with of million This the partially or of $X.X peak as organization the $XXX.X was immediate expenses our to million actions retail very outstanding current in of approximately cash. period. use compared borrowings XX.X% with actions, due prior consolidated the to year sales total million with balance costs. cash in continues These the by of prior Rush of higher digital reduction prior $XX and markdowns. the reduce compared by which coupled million lower as $XXX.X majority the cost lower the our our $XX.X in conjunction our was preservation efforts end and the was the the $X.X margin was Turning as August our to coupled taken 'XX, courseware selling liquidity, with and preserve furlough with our us margin were year our non-essential general entire further QX, efforts, lower actions level to gross period. margin reduction reduced essentially borrowings, primarily sales have prior our merchandise back period expense XX. the well disciplined and down offset to to the XX.X%, on In

million are intermediate guidance. quarter the COVID presents the compared climate. $X.X 'XX We comprised $X.X the our well a Our challenging we virtual current COVID retail liquidity in significant in fiscal term, despite uncertainty of remained during in and that continue with school fiscal was to physical their million XXX to bookstores K-XX projected X,XXX have not bookstores. operates year. for segment e-commerce the the college, impact our and will and that near business Currently, strong Due prior all expect XXX as university providing CapEx bookstores do on 'XX. sites as

we XXXX today, smaller of locations X,XXX stores closings, please question. questions. contracts for This closed an fiscal of bring instructions With interested XX provide store we additional stores. primarily open asking a that, unprofitable to for Operator, physical have the will call our will to total known of in As open net the and XX count virtual stores. those additional with in

Operator

[Operator Instructions] MacDonald comes First question Ryan with from Needham.

Ryan MacDonald

typical the managing inventory you're those here? the making about And optimization? fall? you're of Thanks. you comments, meet have fall to about surpassing I sort sort the talk with guess, needs of Can toward about around assumptions just the about, I versus you're talked traffic you borrowings some of peak move start for sort staffing you of And of comments of as you made sort the thinking some wanted to reaching foot and - through that. expectations what confidence how

Tom Donohue

Yes. Thanks, Ryan. Sure.

in $XX fiscal So liquidity at the had for I the which end - remarks, on really mentioned peak the year the approximately end at is million that from was what higher August million with we $XXX last in my laser-focused of than essentially the we're end. million, of down borrowings, approximately of $XX summer fiscal

about We continue folks about and of as have stores relates brought them And you back lot as Fall on back of still Rush. staff through a needed time. folks we and in furloughed to early summer in it that know, the remaining to XX,XXX opened those get the adapt we are our certainly retail through point there's third furlough the April specifically at this and the But of model as to we beginning cost. a

continue adapt the reduce store we So to the model to expenses.

The other inventories get the you at our hopefully balance later the year-over-year, notice dramatically and approximately you're thing, are and a read $XXX million. when when sheet you'll chance it's to down as certainly filed, looking Q today

terms specifically the team really that not the it's So of expenses, in of the themselves really also with along getting discipline the spend. folks book are retail ahead our but

we money inventories this sales With are COVID the for build to much through environment. especially the the to we've they specifically that not continue down with as spend as sales press seen - really the general merchandise,

strong. remains So very liquidity

continue than able wouldn't We next some pay terms the that time than down higher we back be But to and seen the remains been to much December, so. that continue we've of encouraged our to if see and being the it's down would that debt. and different have beginning get that lower, probably Rush but And to pay debt we be in do I of we we'll pay anticipate are It peak peak. in now. sales where by

Mike Huseby

was to of comment just to the traffic to and is seeing with and the buying. I'm we're is ask store they are stores the to things customers get a going going doing this that reopening I traffic. when lot Lisa wanted drive other students try ask what store Mike. Malat on But of Lisa because we some comment I - creative that we're the on and to to

Lisa Malat

able of day fully I is schools in-person with Mike. we are country - traffic no there is the how as still being plenty mean have our to our maximize the the papers space classes in sales to there in are those schools, the they're Yes. In delivering while still stores, robust across while and every opened physical are seeing on we be residential-wise. stores, campuses read and in No, very absolutely, aren't learning, that footprint. reset the within we students flexible, our

shopping pickup to also perspective, services. offering, but a ways shopping safely execute for events are We mobile from looking experiences Mike students the said, as and personal safety for through

We more on schools very working are. have deeper access can getting so also a frequently to successful offerings and what with level more we in the in with been students communicate successfully closely our more bookstore

Ryan MacDonald

the next That's is extremely digital around some helpful. question you're seeing. of trends I guess the

semester to of As seeing how in this bartleby the usage resources talk on once the here, might what types and spring of you fall started it campus? given a you about in remote? not went say, seeing of you usage have can that students increase same earlier sort terms you're Are of compares that

Kanuj Malhotra

Ryan, is I'll this take that. Maybe Kanuj.

saw think I we acceleration massive post-COVID. a definitely

We Chegg's. in of XX% April. about was traffic between traffic and March were up Our XX%

just we So to and there very And as think saw usage that TAM cases, the market relates We the increased their board, come increased on gaining still as early schools in semester. course competitive are relative share start the the the it's use say it set. to are both hard fall, - Typically a to spike. to we're it's people is assignment the definitely yet, material. very of buying lot

is So studying But very starting actually - still right measure other to we've strong, you accelerate as been all by and assignments, other in cases know. Q&A has usage use as questions actually been of now. that usage measured homework the

Ryan MacDonald

as sort what for and that trends additional then adoption of with move to Day evolving Day well are year? you Great of the into steps last And And to fall you the talk take of your increase offering student of about and through First next the as partners sort need university see solution? awareness with one we are Complete. Can healthy how First sort continued conversations me. then just that from to the

Mike Huseby

I'll one. Jon answer Shar let Yes. that

Jonathan Shar

about cost sell-through materials secures In stated, Day and excited Jonathan. really it's quarter, Mike increased, and company. course Yes, Ryan, Tom we're the by XXX%. students drives as year-over-year it revenue as for down first of for rate First the the a both higher

from digital courseware, We accelerated the are the benefiting which is to move driving growth.

the which and adoption I by proposition is of First our ever of conversation environment. achievement, value is than affordability continue very implementation supported growth And access, significant First Day more and and overall, to of the with think that across acceleration and that Day active, we'll strategically is program. today's relevant campuses and the the in our expectation is see

Mike Huseby

Mike. is This

couple comments, have you a Just any follow-up unless of Ryan, other questions.

off bartleby. on First

way As and talked we product month. saw with with very quality we compelling. in a be the think out it's - first validations we which price can also is partnership, of about was students will more packaged just VitalSource the partnerships this But that the said, the with directly those are is of I we've And that the and detail the access Blackboard the competitive and time are students substantial they those quality contract have companies that just be good, looked product other entered institutions, the it it's and about into coming working disruptive. at and

the always So openings. store versus bartleby today's relates that's coming it year significant thing prior out given challenges call we sale think with as point I thing and a that type face to that's as of do of

where We're I it but interested sure externally schools is Day are multiple of of Day just because that First message expect pipeline have we substantial four The would this our we and Day Day the what say things lot a on have XX. not Complete is product a to fall. in Complete. - Complete fall, First second had a to of we can 'XX fall out, from scale pushing last First doing have of schools getting thing that in there that we're we We make internally First the test

next expect to of going multiple We of year. that into higher fall a it relationship be

are we're that, ready we of and sure together do we're sort terms internally can both key to that, with focused of is And as who we the new So have and because probably in of help adoption systems called coming resource doing so lot model our important get bartleby make think sure can a to financial of metric business operationally. general make the things they them. on looking details the to back result very for every the we a schools business, share success contract revenue, in I to merchandise keeping growth the people, and for now

So them our from drive Day so First from they to share do our on publishers. the really, to with penetrations really XX% we from focused First the extent can And that Complete. XX%, also, we Day up revenues close and XXX%, it. benefit We're

Operator

Fuhrman Alex Next from Craig-Hallum comes question with Capital.

Alex Fuhrman

than you more everything going on my very year impacted guys. to much Thanks that's been for taking question, and Hard this congratulations. think of retailer a by

when be your I said by us a could is that to just cycle year could accomplishment you be get back thing to talk the a about you XXXX or - it now. a something know that? little And first up year scaled with schools you potentially it this a opportunity? quickly like seems have Can on it the in schools schools next tailor-made talk a to guys talk in many is for like be and people of sales if really your looking more of is, of more on it's like bulk to what and given about are an next you've you up you and the for missed that decisions the fall going a I Can package. these beat decisions? spring. notice, seems right wanted that Can those haven't lot think are schools about hope moment's imagine could limit had made seems were stores here I traffic Complete to bit with Day love We'd ask more you even virtual. Is just that's fall? everything One to how an that going about making It just spring offering quite everything opportunity So going running. so get sense here. that probably these big schools

Mike Huseby

over This one comment longer make questions sales, sales But answer at to distribution is also then conversations leading perspective your and was one and doing of Mike. I'll direct is he's to together, it just embedded He effort Jon, from with in our least. that clients. turn that question. just a that product

The how In discuss one of else. is to time attitude what yes. Initially with faculty, to to have schools ways. deal do terms really this, cut-offs and it, we mind students of anything protect our the called share we its all dedicated do was

there deal were couple, probably not schools, let's at possibly to more a many conversations even couple this wait or till I'll same it less we spring let's than fall, next do because want even planned Day First still to And where year can't we - said, the that, time with though this wait these for just they implement but with having a times benefit. Complete. So say had of we a

one recently can. schools On we the month. flipped added are as have hand, it the said, fast other do within we to needed And that there and just last we around as

scaling. talk the Jon and with So I'll let about that, pacing the

Jonathan Shar

as a year, with Complete. spring have you. we Thank that. said, there Mike had Alex, Mike to Yeah, but transition XX. Day year, or in there schools interest term, few four fall the are to is it's in as so Yes. fiscal And renewed fiscal that last looking more this may we defer stated, within last, we're Jonathan. First Hey had have starting This

we're why fall though timing Really a that fees So lead course and having significant we're when critical material and/or a the embedded some either in expecting course multiple based sales it's on while. been where a year. model those opportunity tuition where perspective, the the fee. The is fiscal materials there because this of cycle is are working we've for over into from with a lead published tuition institutions time amount time a is the is big and/or conversations

an for program point implementations the the the the 'XX upcoming of course catalog today And when why and with expecting. to cycle implemented that's leading us that. So is for institution offerings is published up that's that is the for really we're the the to term, focus that along prior conversations approval when an gets fall

momentum, really from active. that significant is our - making and the can convenience proposition create internally ensure that partners. we is significant and for real students, of but investments quite our campus - for that So institution to value something expected impact are We're affordability seamless by experiences the operationalize

for so Rush. that next prepared growth And Fall we're for

Alex Fuhrman

non-on-campus. What stay the a just And things picture, your guys that go a lot you're year hybrid those relevant college not this your are either lot students? a from with virtual of doing year or their when are career students and schools at are they this store So to then you next shop big of with year? visit next book nor back the year sophomores there up had opportunity the to have might of the for rest

Mike Huseby

I'll question. handle that let Lisa

Lisa Malat

sure. Sure, Thanks.

on get I increased able out campaigns done identified schools before mentioned I the or think follow is get it that things collaboration to of we customize they're journey, way. year and really of new the that student to with one be our graduating sophomore messages campus. important partnership and students, We're the student able even our the message sort most whether offerings to you're and offerings to that and in teens this though not we've a

continued larger The is is the much us really alumni see of higher growth ahead there. to world as traction that especially offer as e-commerce, conducted program, close parents. and especially were the that So allowing and of increased relevancy we driving of journey. the Vendor we're GM retails get with getting and the keep a able their by seniors following And which you students Direct to growth to in assortment will our

able are being able relevancy So that we by keep with to working to it pivot connection and closely later. and schools with the students the

Mike Huseby

ongoing system, merchandise been more awareness. it's of we also about the business, talked system think as reasons that e-commerce together. we rolling We of we've year. a both about and question the it'll July out new of much an events is of I X% to always your first that physical of the that's important. which new first partially XX% the quarter is we the everything bookstore sales the schools compared new in that has is were seamless terms to started you user the fairly on. can now always But new students past physical and us, creating messaging although their two activity. in bookstores the - important the been to e-commerce e-commerce need we're to to this going year. that quarter bookstore, But the do just everything bookstore fact e-commerce thought our trying and is up general way. students we the see rollout rollout be that will well the effects, tied to of courseware over last our allows you to in accomplished talked one processes, that online of in in to and have for in about it getting And see so system rest mitigated a We've rest The percentage counter get answer through that e-commerce GM system to much needed better personalized as the general have in buy and experience invested new else and merchandise we and that that can The to online not

and confirming we've but is positive to where So make now a significant difference. that the timing that from difference of have working in will schools that, we this well we the earlier, it us, rolled getting obviously would for have are it's liked feedback out place a

Operator

Wallace Rory Capital. Next comes with from Outerbridge question

Rory Wallace

the First providing different questions, healthy you see. courseware around the sales particular, taking to and and good in already the Day appreciate Thanks for breakout all more percentage is breakout segments, registering pretty my of granularity

make say I some to fall? schools of that and times Jon, to of multiple Is this that business times it Mike was five talking next clear looking win in three on just wondering, you're new you're multiple, sign infer was or comments based I as that a your want So the to when I to looking that you're 'XX. is Day to the safe on compared it number about sure to fair that. fall First fall of assume

Mike Huseby

fall. I three in what this clarify said. I times last What said was I'll that Yes. fall did we versus

multiple the so schools important point number there we're be of this a in Rory, on of next bucketing higher expect number fall not focused into number. We the versus fall, terms to And in go think, substantial another is, of and and The schools First Complete. double margin margin. Day revenue schools, the sure from contribution can revenue we the that some increase but We in margin. have increase making in our the I

should multiple not of Day trying of without really it's function number of terms what of schools of infer with times, just schools. number the school that, that's So number getting a higher a three to Complete, that expect But than the on the is. schools the even I be specific right what First getting in that's was we

Rory Wallace

to you a far certain high-profile as winning, we've the you in as number. post when then get business you you're might that into do are guess, And decent starting more type But of cases. I heard new to it's that halo And think a obviously institutions bring there that some once because Day scale the the you've to won everyone's able effect certainly in First that start that I or institutions pipeline, some accounts with? name the in either more think in disclose familiar to be is are names brand you of that

Mike Huseby

the will that terms last the accounts some publicity certain are in and some type once a when and that will know, that as in they're as in this this that of we got we and of start to you'll think - year model, there of, you attracted into schools others brought this grow business pilot see follow. year of I the was natural accounts some

of and are higher as profile, you some call schools. the them focused on So we

publishing I occur of that's don't do their that are the we have more - any through probably I students that that the names but to know media talk the and something going type program, on enthusiasm and other for given is can of attention the there? about. something will comments Jon, if thing and think schools have

Jonathan Shar

schools by and the program start to No, to their new throughout offering talk fiscal feedback I for we that see the think from And excited get as students. will this their about being we'll of part this positive year.

Rory Wallace

light MBS, segment during particularly operating the overall really are environment the taking just then strategic some given that you of in that market And share It time. you this on it think a combined do be must didn't courseware faring a in it's like basis lot your environment? on honestly decline in. value seems much How this obviously you're in providing competitors of

won could good think new of with $XX in you I And think given physically might you pretty which that closed. being think win market the importantly this million share? number do new you set do year a you've you lot seems you to So are And quarter, I like for taking that guess, business up a a pretty said into I more everything you parlay good that overall business? guess,

Mike Huseby

Yes.

to an these about the value is estimated we really the that is $XX talked with we separate new there think said and I'll fulfill million there. a I which Henderson running more One Dave our we when which school storage COVID. $XX proposals of contract competitive business, dealing MBS' two our just to environment. that and million respond is questions obviously The separate with big change with a merchandise to the the That's Dave win, be done question, we through I'm wholesale the they've is let mix advantage we really speak. basis Complete. general and improve business is although on that able back models so and First to hopefully talk on to March so should revenue come to virtual time to we get level if of a assets going wholesale Day the with over let non-stop and competitive new when custom That's - fulfill about students capability homes. the since hybrid they've do solutions. our we directly warehouses to clients, have question, been

David Henderson

facility, the designated our MBS students we business competitive learning three essential gives Mike. there. March The Yes, point, in automation over-the-market shifts unique distribution in orders been shelter us back that serving and out ed interruption without higher have place over a as Thanks very an running online. since went to our advantage we the were

the in is Barnes course than back May the the advantage very course onboard being team Noble this College in to able what able service terms. and shutdown MBS for starts unique summer MBS not in - are starts the As is the materials this and was able store, Stores of acquired when rather the they a to open in by to This students with in What has facility. we're June hard that model do term we summer for have. referred MBS materials XXX warehoused script the to were occurred, over was term and

Noble institutions. branded However, experience the of & site, is is shopping students' Barnes College which on course eCommerce the to the

to they physical the range question? they wide that decide else a on or So student There's desire, are large residence most them. really pack, want the there, prior number our the Obviously, it COVID market with basis, pick, environment open, if our the they're offering the opportunities can tenders the start. unique MBS model very your can the course forward to ship with campus-by-campus efficient campuses very materials on store campus orders more how either and to us or as get they deliver store a that footprint allows that more they is to and the and are forward, be site pure able to use to students, answers of the of the whichever serve their college means out students But this going original Hope to acquire stores no a class we to in this bookstores, do seamlessly one in have to business whatsoever. support students' that. virtual we pickup, do that or to are deliver the are so proprietary going we importantly, with. convenient that familiar course Those And communicated materials. to

Rory Wallace

assets. you, on Yes. combination Thank and off That's of the Dave. that congrats - pulling

you've So Kanuj it misheard, sounds you'd mentioned business. definitely bartleby the in might you business, say it's - also, like the way that guess - I with Blackboard and a have partnership I and to booked but run to did think addition With a I Vital? better to Mike,

Kanuj Malhotra

stores. in like things partnership Unlike materials. channel, into a necessarily not really activity, course COVID it's of say bartleby. both the we much entered more It's access And can this our it's Students a when and it's purchase help you'd increasingly environment outcomes amount centering student in we're there. expect, enormous as I both unique the tools. us they through this can't Rory, Blackboard spend is all they the these the the will LMS students. for in Institute channel reasons, more time, potential just the and learning impact partnership early really strategic Yes, distribution moment. your and Kanuj. about to after students We We - you right But an are go for for in and an around are, moment think super of so think exactly where they VitalSource competitive to really but excited educators be when in be

excited it. So about we're super

Mike Huseby

Yes.

name on Tom we're out to is such I the to dollars as bartleby that focused marketing making laser other trade-off between and liquidity. efficiently our brand with as such really, the awareness, said, And that using as sure can we're exist get and we just of our think while challenges coming product tremendous new of these with not keep out on a is trying speaking, partnerships important one brand get our there, the generally awareness out - spend has leveraging is Blackboard, utilization quite when traffic there as sellers. getting manage of a rely up. there we're very and VitalSource, And and now really is become used store about, and help and bartleby booksellers I been periods extending our partner store as have excited our now to we think which to store is to during which these time especially with much adoptions, us, bartleby -

a really us. development it's important for So

Kanuj Malhotra

about it's the big our a other as the background, in finding COVID could obviously, guess, the been see we're Google traffic see to, POS, Google's only to I - but strategy traditionally quarter. I is, Mike more. fact would times and a Rory you you that Students environment bookstores, But in the think in efficacy and thing liking acquisition. The ton customer SEO all don't Really alluded like subscribers is of had increasing. add, three the adapting as I couple biggest it is are we're that like the portion us underlying of our of is it. when the up the resident, and

each reinforces Everything out. getting other. it's So

strategy, Vital ed. of million the higher So the serve we XX Blackboard, in obviously, and million students X SEO

both it's to also the firing come The So notion to providing and we being as the solution trying really set. as make It's brand that as priced on just, in all Mike of the clearly to students are we're awareness to cylinders together. is resonating. creating and starting value said, disruptively it

Rory Wallace

I answer, for Mike. Kanuj then one And that really just last Tom. and appreciate the

mentioned I I of And are down million and how ahead borrowings guess, liquidity are You a at into out there's going I mentioned too through again you potentially but inventory Rush. you'll like lot continued I capital that all, a could imagine really obviously a guess, is I approaching prior But of you First to $XX least, much of build? August, It are you your want the tracking, you we for better to you for end generate while. that parts. much inventory. spring cash December just, guess, how then rebuild building early Spring working imagine plan? I moving of those reopenings, versus get by mean, sounds term, don't helpful. have which

that you'll spring not potentially walking you how in overextending? of being improved preparing between making versus do you're sort So line business approach that think for sure

Tom Donohue

that that's a expect is, comes And things. to things don't replenishing of inventory management. Rory. the if anticipate reason there sale, get start we've is really you trying to it or the that out new Yes, don't or and ahead adopted really mantra down no It great point,

that intercollegiate it's the as goes it - fall, well. managing and perhaps into planning even being is sports disrupted So managing that. is, better to degree the a anticipating in it's said, really what we probably And but think team or had anticipated below

adapt, the And So of to the conservatively and I going down not it. inventory of and for think rest get time, that the not needs. the And But adapt if keyword we to ability ability things really that's to sales have don't managing inventory we're we'll year. and we have the same I it at improve. getting the and make to the change the things the really think there to very inventory ahead continue that - meet the is, that's see we sure will comes sales, the if

Operator

And turn time, to over at the Milevoj. will this I call Mr.

Andy Milevoj

everyone. all you Please for our thank interest release December and note second a will and earnings X, day, be in fiscal joining on great Have you, for Thank about our BNED. XXXX. that continued XXXX scheduled on your quarter today's next us or call financial Great.

Operator

conference call. This concludes today’s

You may now disconnect.

Barnes & Noble Education (BNED) 3 Sep 202021 Q1 Earnings call transcript