BNED - Earnings call transcript Q2 2022 | Barnes & Noble Education, Inc.

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Operator

Hello, everyone and welcome to the Barnes & Noble Education Fiscal 2022 Second Quarter Earnings Conference Call. My name is Bethany and I will be your cooperator today. I would now like to hand the call over to your host, Andy Milevoj, Vice President of Investor Relations. Andy, please go ahead.

Andy Milevoj

Good morning and welcome to our fiscal 2022 second quarter earnings call.

Nenke, Mike Executive and David Vice of and are CFO; Tom Henderson, today MBS; Shar, DSS. Jonathan President, David us Huseby, Chairman; CEO Donohue, President Joining of President BNED Retail;

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

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

Mike Huseby

you thrilled and to all us Andy We joining were thank Thanks, this fall. morning. to this back students welcome for campus

to in-person storm categories The year ago electronics, NRF university furnishings Our three in-person an sporting and transition their activities. second return prepare learning issued families a to increased students quarter on-campus, summer of XX% results corroborated $X,XXX and items, this included that and planned on-campus events more average college on This of an students reflected an to top than clothing. environment learning to by back significantly an report their that or spend eagerness to further experience. resumption had as college with indicated a was

operating number environment While to Clearinghouse challenges, learning virtual including present enrollment declines tourists continues many and the The institutions than yet undergraduate pre-pandemic National X% of is classes. back not Student return Center, on-campus of offer students Research an international continuing and of a students experience, policies approximately the to to students, colleges levels, different fewer levels. implemented community to many according to volume alumni pre-COVID to

enrollment also experiencing challenges supply to chain we labor freight declines, shortages addition costs, In escalating are issues. with and

through first and partners we global to the on better our While we mitigate their partnership we offerings mitigate The materials supply facing growth merchandise expect resilient as service begin with retailers. fiscal we business our hopeful proved issues has chain macro to Lids, into best-in-class our day the helped next these many challenges, will pressures and positioned the conditions to were that ‘XX, persist through they in are of fiscal students. Despite providing our campus move these organization to year. our Fanatics course general and address to

look continue cannot organization the as entire further you as is our on our which excited our by be momentum ahead, a that initiatives marketplace. to As execute distinguish offerings, whole in strategic replicated competitive company’s we

student are our material to institutions inclusive access course growth. greater and benefits resonating best-in-class new all merchandise of country strategic access customer solutions institutions The delivering of better omni-channel customers accelerate provide proposition Our innovative unparalleled the the value and and serve, expect the we assortment, we our models an across academic outcomes. and which with offerings, that student unparalleled investments customer experience for

improving solution has First seeing positive on impact Complete tremendous demand term. student access demonstrated We as reducing equitable are for each stress have at academic and beginning the outcomes Day the schools program of the our

surprising the revenue available not campus school students up course to last partner’s broad prior through growth, day these based growth success. from content across offered our greater with multi-campus representing X a was First year, up missions Equally of was on the bookstores, our It’s also course the just enrollment, from access, in bookstores almost Complete schools to students college engage material Additionally, program academic private important, and spectrum colleges supports this systems. the XX,XXX first that undergraduate First large year-over-year and community XX%. approximately campus Day public and student increased models program Complete Day eliminates of from XX retention. when to barriers allowing total the fall benefits, improving small Day fall universities XXX,XXX Xx XXXX With from student both academic term XX experienced Year-over-year, achievement, and significant we for persistence achieve increase.

over XX XXXX stores the up Complete, have undergraduate signed First additional For XX,XXX spring of representing students. enrollment term, that have for Day we

X,XXX materials for first First offers the perform Complete allows traditional them institutions material simplified course for all that class. their course from the learning to This are experience. X model their convenient who to across many it’s well access publishers, shows leading with Day of engage Complete the been creating in students best to materials success. disrupting collaboration Complete day freedom that faculty, Day select course their have First Day to all Day start academically. from the support ensures the all expansive students with for that course better delivery country. documented By allowing their relationship academic them purchase still more the Data a academic BNED’s via term even materials across delivering of is courses full than content an First service, materials one-stop with of students before course have course optional though class before Also, one materials

provides barriers across an and of institution First all for helps students. remove same access entire to the fundamental Day Complete level

had term, students and impact prepared program showed success. positive that equitable the program survey confirming Our BNC’s academic better were academic access who is achieved felt making student that they utilized for ultimately the better better results on a experiences,

advantage help accelerate will adoption the the competitive be schools. proving additional First by schools a that which believe it to adopted for Day to Complete further have is we also

partner ability benefits the Complete part, to Some enrollment they at to First students. seen the Day BNC have institutions they, least report attribute to started market which to have that growth, prospective in of

to our second and of sales business, activities, experienced with the sporting gross now on-campus growth we during general the comparable events Turning XX% quarter. merchandise resumption

their with and Fanatics as us experience re-imagined and offerings with our alumni This offers Lids the partnership leaders experience. and from. to Our and a a that in-store customer student, totally us more offer emblematic allowing unparalleled schools which buying such online, relevant including for an and of will Vineyard are demographic. and newer, space, a logo partnership and for expands highly retail provides our Vines, power omni-channel and merchandise partnership parent partners quality breadth our exciting are assortment in that products, schools brands johnnie-O Lululemon, benefit Both best-in-class

powerful benefit have provide this see and and seen will the the customers. year will grow partnership truly to add from to on we insights We leverage Specific experience. winning and experiences already schools bring we Fanatics students incredible business new market Fanatics, systems what as data platform These their the that an share strategic e-commerce the ultimately user impact excited that new are are will to best-in-class and mobile-first benefit to sites serve.

November websites platform. new and the transition experience have We Fanatic to continued fanatic school on e-commerce through additional the now sites over we to live XXX

environment, other fit Most challenges citations turn and outcomes. various outcomes, plagiarism We Bartleby importantly, today’s financial challenges. solutions on XX% introduced DSS help our dynamic a Turning the products provide continues to combined detailed is while XX/X. executing tools. which focused business, for helping bundle sustainable initiatives, million amongst growing XXX,XXX to strategic operating Bartleby’s year-over-year such solutions, Bartleby us solver of in to grew be growth. review. to initiatives templates there students revenue Plus X an revenue schedules essay solutions, improve I for believe of help rapid new subjects, the business pathways and quarter, expert With to demand $X.X are This and detection, continue Bartleby will In to believe offering year-over-year. our interactive the remain Write already their conclusion, Tom million, XX% tackle this learning Learn of a with exhibit suite outline step-by-step our help study We Q&A includes in approximately and growth with these to the its Bartleby a near-term with value papers tremendous our Bartleby impact students services that we growth. a gross representing position homework offering Bartleby growth. improve we bundle that to subscribers to XX% their which and comprehensive over it over during longer student COVID-affected that, generated DSS success with mitigate quarter, math textbook with to during provides generator, our XX term designed for assignments students. the student guide, well

Tom Donohue

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

classes Day sales a Course rapid to gross compared revenue levels, students Gross for compared year segment, were sporting our general by to wholesale Day the ago. Gross segment. or during flat million in highlighted period from with the schools broader a compared million $XXX million the decrease comparable when XX.X% As from million events learning are Complete second period comprised sales ago were sporting hybrid merchandise increased the First essentially attendance and not offerings, the of which to comparable prior highest quarter million and as This million DSS historically to the $XX.X models, industry offerings. a $XX from by during mitigated increase the headwinds in-person $XX.X $XX.X the decline increase activities were a many pre-pandemic textbook compared benefited sales classes quarter BNC’s million and a $X.X First the coupled with from was activities. retail in-person million to sales in as is company, supplemented and quarter. as as Mike store Retail in earlier, the year the segment, reduction and XX% and we prior growth X.X% $XX.X period. returning the First while increased back comparable quarter, to campus the Total of XX% by Day XX.X% year remote at to increase a greater the year. of for significant $XXX.X events sales increased

return of stores, from Our reopening COVID. closed general merchandise in year period of of which business the were the campus ago and to campus many the the most our majority of students benefited due to the

and online and in method, for the which the accounting Each As are channel BNED a accounted online now logo its as and agency relationship and a commission emblematic the agreement Fanatics sales under has rate, of product emblematic own sales logo receives change per which in-store. sales with our Lids, reminder, percent sales and in-store for will matures.

segment tender sales for GAAP retail agency received. the lower comparable wholesale than prior commission fiscal to the XX.X% lack related decreased selling Net products Our commission constraints received, and actual our on $XX.X sales the was P&L lower the by under or or the million, buyback have which received sold $XX.X the solely reflect for price of whereas on-campus the year primarily model reflect we from allowances. and COVID-XX rather sales demand, the due during to resulting customer textbook partially million offset returns supply opportunities

for due that merchandise contract This the lower were sales grew markdowns. in to to million consolidated student rate bookstores sales. the period. margin contracts, higher-margin subscription orders whereas store coupled material to and wholesale with current cost closures, COVID-XX renewals those shifted and year general direct million, reserves fulfilled campus not during to to from XX.X% $X.X of period, compared was prior $X.X XX.X% in sales primarily or bookstores back in to the an operational retail CSS for year prior mix course the was fully inventory on sales new model The campus benefiting period. Additionally, the due increase lower XX.X% gross quarter the DSS lower favorable campus products,

store students $XX.X Schools enrolled $XX compared was prior dates. growth receivables in compared offerings. increased million is balance the our At drop quarter, and for $XXX.X stores borrowings payments employees the year due increase most million period. when by their year year expenses associated of significant with our increase we on-campus furloughed period student Day with as temporary reopened prior or after administrative as our with compared remit $XX.X Our period as generally borrowings million students mostly of in cash in of the million outstanding This COVID-related we of to selling response to the serve to many ad and First the timing the XX.X% to end the prior of the to employees closures. the in back brought courses

remains e-commerce Operator, for those asking school essentially Our year of bookstores, Currently, strong. current open prior XXX and for K-XX quarter the our as position please CapEx period. their operates that, with line as segment questions. liquidity sites retail comprised university million, was we the $X.X physical bookstores. X,XXX in bookstores virtual in XXX in will for interested a the call instructions With question. provide well college,

Operator

Craig-Hallum question [Operator is you. Capital first comes at Thank Group. Alex line Instructions] open. Alex your The from Fuhrman

Alex Fuhrman

everything talk Complete terms on a given quarter? the how say Hi my ask first good for everyone. going Would to taking and your how like of with of the mass Can chain performed in in for met for to you First it critical overall It about and Day amount question. the that that’s profitability operationally a revenue Thanks wanted with you expectations the of added it big the it contributed semester EBITDA I supply about students? here it offering. looks quarter. the

Mike Huseby

rush Alex, probably how still been we’ve a I cash especially it that still with It’s I’ll it Day bit that our thanks the one given very in Day some the But Yes, perspective, very, focusing about well. First on First we’re analyzing went still from on, very, are primary your of are operational semester question. and underway, the Complete. But the Jon more. think and flows very execution Shar we’re fall for talk happy it performance, let Complete, the little given

physical elected being Some which the First of we went large But year this well. made First fact fulfill Complete in digital easier was of the for that Day that percentage courseware the the the was aided those larger Complete of some large books. were by implementations a big first sold in that that of with the Day courseware, a execution somewhat versus did time, to it the schools mix very that

then for financial terms the enrollments financials In to the that Day enrollments, semester economic of of kind of hours. and effect just several conversion impact, the First and Complete the formula, pricing variables the contribution there are unit

that question expectations looking of how you you’re year answer build the I expectations, If the model about. on talking how then depends To around at and your time is think do result. our what you’re

‘XX colleges when didn’t enrollment built or the budget our the declines, back especially in think happened. spring, we fiscal rather, ‘XX year I the for sorry, community have we that the knowledge of in

conversion time are I hours. expected because news, probably average there There lot lower right in And the to number think very it very, pricing, of a close, very by we’re credit the environment close full-time then given just was the somewhat now. of but school, to it be. of also where varies a part are we number students

would Complete we John a pleased very And So further. Day. the First of but bit the Day performance probably than and be, little let bit it’s I’ll First it it with thought number of talk hours, about a lower credit little very, overall,

Jonathan Shar

an executing an I job helped and Yes. of that expectations, the a schools. of I of lot sort really gives sort confidence that, line local continue where building program, the in much and scale the the digital coverage Thanks, the Completed was standpoint, the campus complete just We of and execution in individual was say in in with terms on expectations. an across had Day aided of the ability the it for of by program Mike. program. that the the nice thing to And outstanding would think We terms our about scale, did of it with First to transition basis, the then on content implemented done digital was really very to model us the is incredible availability in But And it team execution. really And it’s benefit basis. term. campus-by-campus XX fall those of were scale booklists stores at the from of that

individual So campus basis against on courses. book average per the each against on of specific courses hour enrollment and credit those list their really a based cost is the for and the pricing weighted

but down So desire bring we our us help And the also of cost as school’s because from of that’s did content see which well. cost prices came the come the content, an operating down, down to cost standpoint.

which of So campus really XX,XXX a not approximately I expect great. to the time cumulative the campuses basis undergrad we in calendar an add on make think additional the tuition spring, stores campus enrollment set institutions sort are script, of in model frame. decision programs time was that fact quarter a We’ve for year as XX stores when lot year where term and majority of and first frame for on first the and added, really said, and fees in of quarter academic based advance that the is enrollment in would you’d that

incredibly partners First Complete for business. and what and student about So Day our the campus outcomes mean will prospects excited of our

Alex Fuhrman

really Great. helpful... That’s

Mike Huseby

add Let scaling just of Complete. in, are conversion or First on how this different program, many our in than perhaps would out me didn’t opt of would some where higher schools in that there other marketing what what XXX%. one – Alex, schools cases, that learned have got – this I resulted things that are in we is we this. lower terms work we’re cases, too, what in This lower works, is well, we as And see is some which a is scale a lot scaling first Day we comment, significant really semester call

of below the I conversion kind going learned in We lot, that spring. will XXX%. results have and an some starting us and and think the that to improve getting forward But are a that’s only average we lower,

Alex Fuhrman

it’s want don’t schools things follow-up the strong helpful. did the to the early how middle pipeline? that next the sense mean, to bit you given XX year? signed was shake That the little like you given would into for leads tend have too of think up year. unexpected And That’s of up I I Can pretty a XX on that Great. midyear. get to strong a schools you academic really certainly it spring I are heading about semester joining the have talk to typically Is program fall additional sales many that have that the in semester. schools

Mike Huseby

Go guidance. Jon. Specific ahead, Yes.

Jonathan Shar

having think you said outcomes said, I really retention XX think the script, showing ability that in enrollment also stores XX institutions institutions enrollment Mike why Yes, and the optimistic of showing. program is mean a good market students program. I certain of the I – and we as so are of XX,XXX the prepared additional this growth optimistic. are because And student sign. and on benefits are we’re having as that our is impact the and that persistent are to his their And

that, based data that executed us. based robust So, the on – have prospects really really with excited the from the on that’s program of about that institutions the and pipeline coming is the

Alex Fuhrman

really helpful. you very Thank That’s Great. much.

Operator

The line next question MacDonald comes open. your from Needham. Ryan, at Ryan is

Ryan MacDonald

on Lids the adding. Mike in for taking thanks and been and Good quarter and of relationship to Great making you’ve Fanatics the see Congrats nice question. on that Yes. progress a here. sites terms Tom additional you’re morning, my

And sort sort the additional have how Just see live. of merchandise – of say, you’re about of sort you’ve into, that from What seeing as for rolling these the general we merchandise sort you’re as sites spring here general been sites about those been of go we feeling out perspective? sales as curious, opportunity to uplift semester? going

Mike Huseby

rush, and important about we question. had of up were just a we’ve fall I disclosed, Thanks, call It’s schools really for purposes system. as think on what Fanatics Ryan. – running we XX under the that That’s the really e-commerce

logo increased turned we XX we over long April. in emblematic worked in feverishly under it to a And as had know, that substantially. all demand. and with Lids in the we stores items entity Those the partnered e-commerce results stores where summer going management you of As was into the the back of terms became to FLC they snapback Fanatics that there to get stores inventory be the apparent

When fact for compare it compare it open, it XXXX stores compare – to to to open. the no because big few of few year and very that there trying You’re trying to was e-commerce campuses to very, ‘XX. were we ‘XX a very you’re

in is e-commerce So activity ‘XX. the much higher

and fanatic the which brand menu, are e-commerce substantial it into So comes seamlessly they both experience, for logo, ‘XX are X those into to and the we of schools the school, a they we so. school’s compare that’s XXX student’s important specific getting or to select it being more ‘XX of which system each the And within improvement. personalized reflect our comparing years sorry, without each and Fanatics local customized now only to subject the items, It’s from the they and if note emblematic of – part system, that about, happened the apparel, – that into to XXX is last to brand, sites over student want both that there brand is they talk the means transferred weeks each approach. percentages,

will e-commerce and go from from at by and easy this from they they we haven’t saw best-in-class is representative results So with use the I in how and to – Friday, would would third are what schools yet quarter really we we already results we’re I it are how But Fanatics. received interested to looking to encouraged experience. at that or encourage sites on we’re and really they our how expansive for offering what see report results looking Monday, website. haven’t what which which the also the of we we’re you results in terms of else higher and gathered we’ve the look the to Fanatics early anyone vastly the number – now started very Black forward call Cyber are assortment are see And that’s

just in over and perspective, but the particularly to but up e-commerce so are we that many holidays not schools happen from on we stores, the spring running, what’s excited just So but now have e-commerce, not about an also semester, going e-commerce.

Ryan MacDonald

side, really on Yes. when It’s think here. potential that the opens e-commerce and you good holiday the the about up a season point

see there gross my and question to ask the great to numbers As about really the the It’s strength wanted subs that continued second Bartleby. in climb. continues rate I growth to

Just curious as some usage to see student adoption up what as Because and check had weak there terms maybe semester? progressed we seeing you’re in of usage numbers talked through about the we’ve and patterns saw put there. obviously, student some changing

Just industry-wide Thanks. trying how to understand performance if Noble’s that’s for something looks & or Barnes that’s more comparatively Bartleby?

Mike Huseby

Yes, address I can for that think Nenke David us.

David Nenke

Yes.

We students on-campus introduction of well students a come as well have learning the in are in seen back mix as through we said virtual. as as the

are learning. service customers help their providing to to augment We

their agnostic method, support there to to students I – we guess they want learning as to we learn. So, be

continued have good usage. to see We

Our year-on-year regards customers our actually subscribers in of and are metrics continuing to size increased timeline our usage, use fact, in for us. to saw And paid most etcetera. we

the are that they we can we their go help learning. that So, are encouraged as building services through customers support

on broadly so seeing. on do the our wouldn’t we we we or about dynamics what trying that or are providing to to can was speculate service we are like And I more best are excited anything industry customers. focus

are responding we about are seeing and our we how excited So, are customers to products. usage good

Ryan MacDonald

for my Excellent. Thanks questions. taking

Operator

comes The your at Wallace Capital. Outerbridge Rory next from open. line question Rory, is

Rory Wallace

curious Complete. First was I Day on Thanks my taking question. for

the signings, grow some behind the this of how co-marketing quarter? seem receptive are where something the schools could terms enrollment term, drive First that optimize quite to With high And the structure January conversions? to this or the like programs, Mike situation a kind the made average for is around really new of in following this comments a to actually spring is Day in strategy optimizing which sequentially being the of on just the program where feedback the enrollments revenues marketing

Mike Huseby

is and is Mike, – marketing, I and each Rory, have different, differently. your jump question on each said, will they I like in. approach Yes. school the co-marketing, Hi let this Jon But around marketing

more are others. Some than cautious

Some are very aggressive.

in marketed calling of their, for First the saying, go as books enrollments is lot of of have in schools have and are Day of And works schools attention this people gotten what those geo those have in involved to making us would Some this.” who said, them, are some sales free. we Complete “Hey, there as schools cautious schools that those to cases, in areas, that their during are increased now access to actually inclusive the call Day competitor need are First the we see model. a process, the decision Some because a Complete John

send cautious Complete product, going opposed than some basically positive as the think signals marketing it now aggressive their realized wouldn’t they schools now cover think clear of the see understand in trying are the the the some their selling of out faculty so I that They the to of others conversations Day might opt and issues And had happened it’s aren’t themselves And of a – few sometimes highlight so I they cautious to of the benefits terms are that the call that’s that they they some sales of marketing. I in have overly probably I more from cases. I when perhaps and we more in type and were how more ability in just – market unless and First until thing, it. to the And more, how think our be they with benefits the benefits the in fully process process. school are to that in those during constituents

the will was I it are that I more I with referred come about answer to, the I things these we So, to. that referring that – I if marketing. Jon learnings let is And schools specifically one talk There he that’s of wants the the but around the learnings experience think think have yes. to around, basically have is

Jonathan Shar

of Yes. confidence the there a Day high just has that institutions and concierge outcomes a sort from and really to teams to convenience marketing in and execute And the No, students that create the and ability drive institutions. and at the there schools. within experience been execution our on and I of the store course to think material that level and our a and discussions Complete, lot program those is move building for student lot supporting how great on First model of a based on collaborate at the positioning delivery really optimize disrupt outstanding of of

time, that the executed sell-throughs first participating in in think opportunity for as schools a books is the have program our the to benefits lot institutions see semester were what of and we students – program driving and first experienced within – schools as of of as class, students, So, well participating the this even at students ready have and first the they to of that having the the day the we box there that are they of sort prior are that picking this up. that the improve many to the of the for higher those percent the was them

results show class, that prepared is there doing surely in acceptance of materials having as I the of being more that better understanding more of think and benefits and well. better are in

or see schools as in becoming very peer and then think of I even schools students of participation participating believe competitive and to that both time over collaborate marketing the in it’s also more see institutions. willing in they to becoming So, the working excited schools enhanced benefits growth the more to

Mike Huseby

giving revenue that’s the But would student what’s specific the on on be with enrollments your it Rory, Day added going program. to just happen. under Complete happen it are obviously going question of First guidance – assume that any logical to we to being not growth, incremental number January

Rory Wallace

following on guess is pipeline. try of to right Do of now? enrollment similar with moving parts I and sales the sort First and And higher to for environment I lot levels ‘XX you Day question a understand of capacity of that. have ‘XX, even operational fall fall or the that appreciate in target around approach Complete I there

Mike Huseby

we to we answer The do. And that yes, definitely yes is are.

fall for detailed got of process, are very get robust but ‘XX. very do very, have we sales but it’s We have a into pipeline. we a do We pipeline describing, won’t –

cases see First of our most on Complete And those things making commitments type most we published get tuition to that can’t site speak the so they given semester the year of year for have are with we to but of that for have schools the schools on of from in ‘XX some of spring for you and comfortable already pulling discussions happening, of in are many and fact adopting and with those Day that having point – fall are thing schools this they quickly ones that the some change some fiscal felt that see the that earlier, have are rates where ‘XX just doing are spring semester. of are they rates you some that forward, schools

Rory Wallace

last get those performance, that terms of level to Great. you you do for seem structurally that? receivables flow my one it’s comment tough creating couple a higher same there. going Day to kind be of know on then the with, more time be And this kind benefit obviously just higher margin receivables as supply to you you are just this think to on a incremental just so margin of but you from you Thanks and Tom on good of worked briefly cash a getting Complete, I your what’s you of I Mike. environment, going are question running fiscal in be end at mean is was of initiatives. And a down your can kind by for – or First those collections are it’s cadence

you quarters? in the how are next margin about performance few sort curious feeling of Just

Tom Donohue

Rory. Thanks, Yes.

In then in, it the students, get point good the your our pay and cash the product get to capital sell the terms a cycle, working to and historically, vendors, working was of cycle point. capital it’s

the those on we the campus, With and of Day products instances school. in typically paying before for Day a cadence the Complete get First products we are by lot providing and the First the products paid

through lessons up the chalks to by right, we address receivables state we really But reconciliation and And the and in First perhaps to and student student. date triggers is – are school what with billing sense and the products important First and that of Complete billing Day real you the that’s we learned. really the So, higher the are will this as collecting the are semester. get that look Day

terms we would year fiscal the get as happen. is So, quickly. expect you That they into materials come the also are to of it the it so materials, the pickup we as lot their which think other of of the you they reflective through term buying will growth what products the so see and yes. to and I the last you or course their programs are should that it’s mix. of emblematic was not on a were the When – that certainly by and supply spring and convenience what campus the great margin levels performance, And receivables balance are kids products wash And see that logos. store would sheet and higher, down in growing and which missing those café the back really end, experiencing and in is as are they students well are year getting comes out they pre-pandemic is

So, will full the the it’s to mix, margin campus over the but moving should experience on which direction. drive back certainly right It’s not certainly time. pre-pandemic in sales that improve having performance levels,

Mike Huseby

This us waiting on in how while are into. in because the sell depends supply that moving the In general commission, call our under we it and of issues, inventory newer contract Fanatics area, some that the sales lower through April, in struck older would the the supply back a inventory and fact transferred It of chain that was to Rory. some agreement them did a merchandise we Fanatics I guess, we to with inventory, Mike, [indiscernible]. of of given that we is the Lids are lower we feed current Lids has with inventory

that somewhat, So, our not low. although that, the remaining that’s did is very affect margin of percentage

we dragging should forward. that going not impact see So,

Rory Wallace

more of David, with growth the the you the fiscal positioning bucking I of just how I versus DSS understand peers. guess some year? just terms rapidly top improve Yes. sort with in Bartleby this the be the just for and appreciate at flux, are that What of business one structurally fleets here the somewhat Okay. into for engagement initiatives And the half trend can And on the kind business of in distinction. kind of Bartleby, which seems back for of looking course? environment to

David Nenke

the we Yes. of Plus the launch the The saw online we to main thing that rest will Bartleby that we rest as the in – the in and priorities will to think year, many focus also main SEO. stores etcetera. to the roll limited on Obviously, from what But stores. is the are XX on as we continue store I our to out to one and work going features, product of over of available possible,

take-up seen product. and have on good customers from We that our usage good

excited are very full etcetera. available of the being to customers, We about range pitches

will as So, providing of going products. and that one kind customers with they our a be services they how our and of priorities look of our engage to forward at use key full suite we how it

that the features getting can initiatives work those will for so of range the product. really going to the to hands for So, things of Bartleby in of the Plus and is continue of one us some year, full the on students use of key and we they back be the half that

So, into one our things were excited for I that think was going it fall of that about exceeded and the expectations we the rush period.

Rory Wallace

appreciate questions. Thanks I my lot. a taking all everyone. Thanks you Okay.

Operator

questions to through. be appear coming anymore don’t We Instructions] [Operator having

back for closing to remarks. So, I will hand Andy any the call

Andy Milevoj

and Thanks you note early Thank all on Great. your hope everybody scheduled BNED. a our Please holiday us and call great financial third next fiscal continued We release has March. joining in ‘XX interest will today’s in be Bethany our for you. earnings quarter season. thank

Operator

for conference This joining. you concludes Thank call. today’s

may You now disconnect your lines.

Barnes & Noble Education (BNED) 30 Nov 212022 Q2 Earnings call transcript