Latest news with #Barnes&NobleEducation
Yahoo
5 days ago
- Business
- Yahoo
Hopkins replaces Barnes & Noble as bookstore operator
The Johns Hopkins University is replacing its campus bookstore operations from Barnes & Noble Education to Follett Higher Education Group of Westchester, Illinois, this month, according to the university's communications office. Barnes & Noble Education has managed and operated the university's bookstore since 2006, when the store relocated from a campus academic building to its current location at the corner of St. Paul and 33rd streets. Barnes & Noble Education became independent from Barnes & Noble in 2015, a company spokesperson said. The new operator, Follett, is partnered with more than 1,000 college campuses in North America to provide merchandising, distribute course materials and operate campus stores, according to its site. Hopkins is one of 100 universities to either partner with or renew their contract with Follett this year. Others include Howard University, the University of Chicago and Dartmouth University Athletics. Follett is excited to support Hopkins by 'delivering a campus store experience that matches its purpose-driven spirit and world-class standard,' the company's chief marketing officer, Leann Fowler, said in a statement. According to Hopkins, Follett was chosen after a lengthy review process that included feedback from university officials, more than 2,000 students and more than 500 faculty members. 'Throughout the selection process, Follett demonstrated a profound understanding of higher education and the bookstore industry while balancing innovation and enhancing service to university faculty, students and community members,' Matt Moss — Hopkins' assistant vice provost for dining and auxiliary services — said to The Hub, the university's communications outlet. Follett also prioritizes sustainability and local procurement, which are values that align with Hopkins' long-term strategic plan, Moss told The Hub. Through Follett's management, the store will offer more merchandise and apparel options, and customers will be able to order customizable Hopkins-branded products through Follett's site, Hopkins said. According to Hopkins, the store will continue its community events, including book signings, art exhibitions and live musical performances. The university attributed the stores' success to these events, which have popularized it with both the Hopkins and greater Baltimore community. The store will undergo its transition to Follett this month. As a result, course material purchases will be made online with an option for either delivery or store pickup, according to the university. A more comprehensive store renovation is planned for next summer. Have a news tip? Contact Irit Skulnik at iskulnik@ or on X as @irit_skulnik
Yahoo
18-03-2025
- Business
- Yahoo
Barnes & Noble Education, Inc. (BNED): A Bull Case Theory
We came across a bullish thesis on Barnes & Noble Education, Inc. (BNED) on Substack by Catapult Capital. In this article, we will summarize the bulls' thesis on BNED. Barnes & Noble Education, Inc. (BNED)'s share was trading at $9.73 as of March 17th. An aerial view of a well-stocked bookstore, with customers browsing inside. Barnes & Noble Education (BNED) is the independent university bookstore division of Barnes & Noble, spun off in 2015. Initially seen as a more stable business compared to mainstream retail, BNED operates 1,164 bookstores across the U.S., with 649 physical and 515 virtual locations. The company primarily sells branded merchandise and textbooks and has historically faced headwinds from e-commerce competition, digitalization, and piracy. The textbook retail market has shifted toward an oligopoly, with BNED controlling about 30%, its main competitor Follett also holding 30%, and the remaining share split between self-managed stores and smaller operators. Over time, self-managed bookstores have ceded share to BNED and Follett, consolidating the industry further. Despite expectations of resilience, BNED's performance post-IPO has been disastrous. Amazon and other e-commerce players have aggressively encroached on BNED's core textbook sales, while digitalization has enabled publishers to sell directly to students, bypassing bookstores. Rampant piracy has further eroded the market, impacting both BNED and textbook publishers. However, salvation has come in the form of "Equitable Access" (EA) programs, designed to address affordability concerns for lower-income students. These programs shift textbook purchasing to an opt-out model, bundling textbook fees with tuition and dramatically increasing sell-through rates—from roughly 35% under the old model to nearly 80% at campuses adopting EA. Universities benefit from higher textbook sales, students receive materials at a discount, and publishers see stronger profitability despite offering price reductions. This shift mirrors the transition of the music industry to subscription-based streaming, where higher volume offsets lower per-unit revenue. BNED launched its own EA programs—First Day (FD) and First Day Complete (FDC)—in 2021. The rollout has been highly successful, with 16.4% of its covered campuses now enrolled in FDC. While overall revenue has remained stable due to the cannibalization of traditional textbook sales and store closures, margins have surged, transforming BNED's financial outlook. The company has shifted from breakeven EBITDA in FY23 to posting 4.7% trailing-12-month EBITDA margins, a testament to the program's impact. At this point, the key question is not whether FDC will succeed, but how much market penetration BNED can achieve—20%, 30%, or even 70%? The company faced a major overhang in early 2024 when the Biden administration's Department of Education (DOE) launched an investigation into the opt-out nature of EA programs, questioning whether students were overpaying. At the same time, BNED was highly leveraged due to industry headwinds and failed acquisitions, with significant debt maturing in mid-2024. The DOE probe created uncertainty, making lenders hesitant to refinance. BNED was forced into a dilutive rights offering, sold a large stake at a discount to Immersion Corp (IMMR), and converted second-lien debt from Fanatics and VitalSource into equity. As a result, IMMR became the de facto controlling shareholder, with an initial 40% stake that has since been reduced to 32% through additional share issuances aimed at further deleveraging. In December 2024, the DOE investigation concluded without action, as universities defended the benefits of EA programs. With this regulatory risk resolved, BNED now finds itself at the early stages of an FDC rollout that is fundamentally reshaping its profitability. The leverage issue is in the past, the company is generating strong cash flow, and its competitive position is solid in an oligopolistic market. Valuation remains the key opportunity. Despite these fundamental improvements, BNED trades at just ~5x EV/EBITDA on trailing numbers. However, as FDC penetration continues rising, profitability is set to increase further. If we assign a modest 14x multiple on forward unlevered earnings, factoring in conservative EBITDA growth and normalized capex, the stock could be valued at $23.3. The current setup presents a compelling opportunity—BNED is a transformed business, in a resilient market, with its largest regulatory overhang resolved. As the market fully realizes the implications of BNED's shift to EA programs, the stock has significant upside potential. Barnes & Noble Education, Inc. (BNED) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held BNED at the end of the fourth quarter which was 6 in the previous quarter. While we acknowledge the risk and potential of BNED as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BNED but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
12-03-2025
- Business
- Yahoo
Barnes & Noble Education Third Quarter 2025 Earnings: EPS Beats Expectations
Revenue: US$466.3m (up 2.1% from 3Q 2024). Net income: US$7.11m (up from US$9.93m loss in 3Q 2024). Profit margin: 1.5% (up from net loss in 3Q 2024). EPS: US$0.23 (up from US$18.68 loss in 3Q 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 92%. The company's shares are down 3.4% from a week ago. Be aware that Barnes & Noble Education is showing 3 warning signs in our investment analysis that you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
