Business Operations - Barnes & Noble Education, Inc. operates 1,164 physical and virtual bookstores, serving college and university campuses and K-12 institutions across the U.S.[147] - The company has streamlined operations into one reporting segment to better reflect its management structure and resource allocation[160]. - The company opened 49 stores and closed 130 stores during the 39 weeks ended January 25, 2025, with estimated net annual sales of $159 million[178]. Financial Performance - In Fiscal 2024, the BNC First Day Complete sales reached $141.8 million, a 29.5% increase from $109.5 million in Fiscal 2023, while total BNC First Day sales increased by 20.8% to $222.2 million[153]. - Total sales for the 13 weeks ended January 25, 2025, were $466.3 million, a slight increase from $456.7 million in the same period of 2024, while total sales for the 39 weeks ended January 25, 2025, remained stable at $1.33 billion compared to $1.33 billion in 2024[170]. - Gross profit for the 13 weeks ended January 25, 2025, was $96.4 million, down from $100.0 million in the same period of 2024, and for the 39 weeks, gross profit decreased to $281.2 million from $286.9 million[170]. - Net income from continuing operations for the 13 weeks ended January 25, 2025, was $7.1 million, compared to a loss of $9.9 million in the same period of 2024, while the net loss for the 39 weeks was $42.6 million, an increase from a loss of $35.0 million in 2024[170]. - Total revenue for the 13 weeks ended January 25, 2025, increased by 2.1%, or $9.7 million, to $466.3 million compared to the same period last year[175]. - Income from Continuing Operations surged by $27.5 million, or 283.3%, to $17.8 million compared to a loss of $(9.7) million in the prior year[175]. - Adjusted EBITDA from Continuing Operations improved by $6.3 million, or 29.8%, to $27.4 million from $21.1 million last year[175]. Enrollment and Market Trends - The estimated enrollment for institutions adopting the First Day Complete program increased by 18.9%, from 805,000 to 957,000 students[153]. - The company observed increased year-over-year enrollment trends in Fall 2023 and Spring 2024, particularly at community colleges, which are correlated with economic conditions and unemployment rates[164]. - The company plans to scale the number of schools adopting the First Day Complete program in Fiscal 2025 and beyond, aiming to improve student outcomes and increase market share[153]. Cost Management and Competition - The company continues to face significant price competition in the textbook and course materials market, with students being highly price sensitive[169]. - The company is experiencing growing competition from alternative sources of textbooks and course materials, impacting traditional bookstore sales[164]. - Selling and administrative expenses decreased by $31.7 million, or 13.0%, to $211.5 million for the 39 weeks ended January 25, 2025, primarily due to a decrease in payroll and related operating costs[192]. Debt and Financing - The company raised approximately $95.0 million in new equity capital through a $50.0 million private investment and a $45.0 million rights offering, enhancing financial flexibility[156]. - A term loan debt conversion resulted in a loss of $55.2 million, with $34.0 million of outstanding principal converted into common stock[156]. - The refinanced credit facility provides access to $325.0 million, maturing in 2028, which is expected to reduce annual interest expenses[156]. - The company recognized a loss on extinguishment of debt of $55.2 million during the 39 weeks ended January 25, 2025, due to the conversion of approximately $34.0 million of outstanding principal and interest into Common Stock[199]. Cash Flow and Capital Expenditures - Free Cash Flow for the 39 weeks ended January 25, 2025, was $(160.3) million, compared to $(114.6) million for the same period in 2024, indicating a 39.9% increase in cash outflows[216]. - Total Capital Expenditures for the 39 weeks ended January 25, 2025, were $9.3 million, down from $11.5 million in the same period in 2024, a decrease of 19.1%[224]. - Cash flows provided by financing activities for the 39 weeks ended January 25, 2025, were $135.2 million, compared to $59.9 million in the prior year, a significant increase of $75.3 million[225]. Tax and Income - The company recorded an income tax expense of $10.7 million on pre-tax income of $17.8 million for the 13 weeks ended January 25, 2025, resulting in an effective tax rate of 60.0%[205]. - The effective tax rate for the 39 weeks ended January 25, 2025, was (38.8)%, with an income tax expense of $11.9 million on a pre-tax loss of $(30.7) million[206].

Financial Performance - Total sales for the 13 weeks ended January 25, 2025, were $466.3 million, a slight increase from $456.7 million for the same period in 2024, representing a growth of 1.4%[2] - Gross profit for the 39 weeks ended January 25, 2025, was $281.2 million, down from $286.9 million in 2024, reflecting a decrease of 2.3%[2] - The company reported a net income of $7.1 million for the 13 weeks ended January 25, 2025, compared to a net loss of $9.6 million for the same period in 2024[2] - Adjusted EBITDA for the 39 weeks ended January 25, 2025, was $72.7 million, up from $46.3 million in 2024, showing an increase of 56.9%[7] - The net loss from continuing operations for the 39 weeks ended January 25, 2025, was $42,632,000, compared to a loss of $35,045,000 for the same period in 2024[18] Expenses and Liabilities - Selling and administrative expenses decreased to $71.6 million for the 13 weeks ended January 25, 2025, down from $79.8 million in 2024, a reduction of 10.3%[2] - The total current liabilities decreased significantly from $849.6 million in January 27, 2024, to $534.7 million in January 25, 2025, a reduction of 37%[5] - The company recognized a loss on extinguishment of debt of $55.2 million related to the June 10, 2024, Term Loan debt conversion[8] Cash Flow and Investments - Free cash flow for the 39 weeks ended January 25, 2025, was $(160.3) million, compared to $(114.6) million for the same period in 2024, indicating a worsening cash flow situation[10] - Cash flows used in operating activities from continuing operations totaled $138,527,000 for the 39 weeks ended January 25, 2025, compared to $83,221,000 for the same period in 2024[18] - The company reported a net cash flow used in investing activities of $8,508,000 for the 39 weeks ended January 25, 2025, compared to a cash inflow of $10,014,000 for the same period in 2024[18] - Proceeds from borrowings for the 39 weeks ended January 25, 2025, were $667,355,000, an increase from $454,459,000 in the same period in 2024[18] - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $11,843,000 for the 39 weeks ended January 25, 2025[18] - The cash, cash equivalents, and restricted cash at the end of the period for continuing operations was $16,727,000 as of January 25, 2025, compared to $15,024,000 at the end of the same period in 2024[18] Capital Expenditures - Total capital expenditures for the 39 weeks ended January 25, 2025, were $9,300,000, a decrease of 18.9% from $11,459,000 for the same period in 2024[11] - Physical store capital expenditures for the 13 weeks ended January 25, 2025, were $1,219,000, up 5.3% from $1,158,000 in the same period in 2024[11] Financial Measures - Adjusted earnings and adjusted EBITDA are used as non-GAAP financial measures to evaluate ongoing operating performance[12] - The company emphasizes the importance of reviewing GAAP financial information alongside non-GAAP measures for a complete understanding of financial performance[16] Sales Composition - The percentage of product sales and other for the 13 weeks ended January 25, 2025, was 90.7%, slightly down from 91.0% in 2024[3] Accumulated Deficit - The company’s accumulated deficit increased to $(699.2) million as of January 25, 2025, compared to $(629.2) million in 2024[5]

Core Insights - Barnes & Noble Education, Inc. (BNED) has appointed Christopher Neumann as General Counsel & Corporate Secretary and Gary Luster as Chief Accounting Officer, effective March 3, 2025 [1][2][4] Group 1: Leadership Appointments - Christopher Neumann brings extensive legal experience from Six Flags, where he led legal and corporate governance functions, including a significant $8 billion merger [2] - Neumann's background in the education sector includes serving as Vice President and Deputy General Counsel for Kaplan, enhancing his expertise in the industry [2][3] - Gary Luster has a strong accounting and finance background, having led financial transformations in large retailers, which will aid BNED in improving operational efficiencies [4][5] Group 2: Strategic Importance - The appointments of Neumann and Luster are expected to enhance BNED's leadership capabilities, driving operational improvements and aligning strategies with industry best practices [6] - Their combined expertise is anticipated to strengthen BNED's legal framework, business strategy, governance, and risk management, positioning the company for long-term growth [3][6] Group 3: Company Overview - BNED is a leading solutions provider for the education industry, focusing on affordability, access, and achievement for academic institutions and millions of students [7] - The company offers a range of services including campus retail, academic solutions, and wholesale capabilities, supporting educational advancement [7]

Core Insights - Barnes & Noble Education, Inc. (BNED) has appointed Christopher Neumann as General Counsel & Corporate Secretary and Gary Luster as Chief Accounting Officer, effective March 3, 2025 [1][6] Group 1: Leadership Appointments - Christopher Neumann brings extensive legal experience from Six Flags, where he led legal and corporate governance functions, including a significant $8 billion merger [2] - Neumann's background includes serving as Vice President and Deputy General Counsel for Kaplan, providing him with valuable insights into the education industry [2][3] - Gary Luster has a strong background in accounting and finance, having led financial transformations and implemented robust financial controls in large-scale retailers [4] - Luster's experience includes working with companies like Tiffany & Co. and Capri Holdings, which enhances his ability to navigate complex financial operations [4][5] Group 2: Strategic Importance - The appointments of Neumann and Luster are expected to strengthen BNED's legal framework, business strategy, governance, and risk management [3][6] - Their leadership is anticipated to optimize processes, mitigate risks, and align strategies with industry best practices, positioning BNED for long-term growth [6] Group 3: Company Overview - BNED is a leading solutions provider for the education industry, focusing on affordability, access, and achievement for academic institutions [7] - The company supports millions of students and offers a range of services, including campus retail and academic solutions [7]

Financial Results Announcement - Barnes & Noble Education, Inc. announced preliminary unaudited financial results for Q2 ended October 26, 2024[3] - The press release was issued on November 7, 2024, detailing the company's financial performance[3] - The financial statements and Non-GAAP reconciliation tables are included in the press release as Exhibit 99.1[3] Company Information - The company is listed on the New York Stock Exchange under the trading symbol BNED[1] - The report does not include specific financial metrics or performance indicators in the provided content[4]

Business Operations - Barnes & Noble Education operates 1,162 physical and virtual bookstores, serving over 5.7 million students[109]. - The number of campus stores increased to 183 from 157, representing a 17% growth[117]. - Estimated enrollment for the Fall 2024 semester is projected at 925,000, up 16% from 800,000 in Fall 2023[117]. - Enrollment trends showed an increase year-over-year in Fall 2023 and Spring 2024, particularly at community colleges[125]. - The company is focusing on scaling the number of schools adopting the First Day Complete strategy in Fiscal 2025 and beyond[128]. Financial Performance - Total sales for the 13 weeks ended October 26, 2024, were $602,122, a decrease of 1.9% compared to $610,379 for the same period in 2023[134]. - Gross profit for the 13 weeks ended October 26, 2024, was $137,643, an increase of 1.0% from $136,242 in the prior year[134]. - Net income from continuing operations for the 13 weeks ended October 26, 2024, was $49,735, compared to a net income of $24,854 for the same period in 2023[134]. - Adjusted EBITDA for the 13 weeks ended October 26, 2024, was $65,958, up from $51,080 in the same period last year[134]. - Total revenue for Q2 fiscal year 2025 decreased by 1.4%, or $8.3 million, to $602.1 million, primarily due to closures of underperforming stores[139]. - Year-to-date revenue for fiscal year 2025 decreased by $9.0 million, or 1.0%, to $865.6 million, also driven by store closures[141]. - The company reported an operating loss of $(35.4) million for the 26 weeks ended October 26, 2024, compared to an operating loss of $(5.9) million in the same period of 2023[164]. Sales and Revenue Growth - The BNC First Day Complete program generated sales of $166.2 million for the 13 weeks ended October 26, 2024, a 22% increase from $136.4 million in the same period last year[117]. - Total BNC First Day sales reached $235.4 million for the 13 weeks ended October 26, 2024, an 18% increase from $199.2 million in the prior year[117]. - The First Day Complete model drives greater unit sales and sell-through for bookstores, addressing market demands for reduced pricing and improved student outcomes[116]. - The First Day Complete and First Day programs are expected to continue driving market share and revenue growth, with many institutions adopting these programs in Fiscal 2024[128]. - BNC First Day programs contributed to a $55.7 million, or 21%, increase in course material sales during the year[141]. Cost Management - Selling and administrative expenses decreased to $72,940 for the 13 weeks ended October 26, 2024, from $85,961 in the prior year[138]. - Selling and administrative expenses decreased by $13.0 million, or 15.1%, to $72.9 million for the 13 weeks ended October 26, 2024, primarily due to cost savings initiatives[157]. - Total cost of sales for the 13 weeks ended October 26, 2024, was $464.5 million, or 77.1% of sales, down from 77.7% in the prior year[153]. Liquidity and Financing - The company completed various financing transactions, including a $40 million At-the-Market sales agreement, to enhance liquidity and support growth initiatives[118]. - As of October 26, 2024, the company had $28.9 million in cash on hand, including $14.9 million of restricted cash[176]. - Cash flows used in operating activities from continuing operations were $(96.6) million for the 26 weeks ended October 26, 2024, compared to $(47.2) million for the same period in 2023, an increase of $49.4 million[179]. - Cash flows provided by financing activities were $102.7 million for the 26 weeks ended October 26, 2024, compared to $41.2 million in the prior year, a net change of $61.5 million[182]. - The company may need to raise additional funds through public or private financing if available funds are insufficient for future activities[176]. Market Challenges - The company is experiencing increased competition from alternative sources for course materials, impacting traditional distribution channels[126]. - The broader macro-economic global supply chain issues may impact the company's ability to source school supplies and general merchandise[126]. - The company closed 119 stores during the 26 weeks ended October 26, 2024, with an estimated net annual sales impact of $(67) million[144].

Financial Performance - Total sales for the 13 weeks ended July 27, 2024, were $263.4 million, a slight decrease from $264.2 million in the same period last year[1] - Gross profit decreased to $47.2 million (17.9% of sales) from $50.6 million (19.2% of sales) year-over-year[1][2] - Operating loss widened significantly to $(91.7) million (34.9% of sales) from $(41.7) million (15.8% of sales) in the prior year period[1][2] - Net loss from continuing operations increased to $(99.5) million (37.9% of sales) compared to $(50.0) million (18.9% of sales) in the same period last year[1][2] - Net loss for the 13 weeks ended July 27, 2024, was $99.5 million, compared to $50.4 million in the same period last year[12] Non-GAAP Financial Metrics - Adjusted EBITDA (non-GAAP) for continuing operations improved to $(20.7) million from $(25.9) million in the prior year period[5] - Adjusted EBITDA is used by the company as a primary method for planning, forecasting, and evaluating performance, including for performance incentive plans[11] - Free Cash Flow (non-GAAP) was $(152.4) million, compared to $(130.0) million in the same period last year[7] - Free Cash Flow is highlighted as a key metric to assess cash flow available for future debt service obligations and working capital requirements[11] - The company does not provide a reconciliation of forward-looking non-GAAP financial metrics due to the unavailability of reconciling information without unreasonable effort[11] Cash Flow and Capital Expenditures - Net cash flows used in operating activities from continuing operations increased to $144.0 million in the 13 weeks ended July 27, 2024, from $119.9 million in the same period last year[12] - Proceeds from borrowings increased to $217.6 million in the 13 weeks ended July 27, 2024, compared to $145.2 million in the same period last year[12] - Net cash flows provided by financing activities increased to $139.9 million in the 13 weeks ended July 27, 2024, from $93.2 million in the same period last year[13] - Cash, cash equivalents, and restricted cash at the end of the period were $21.3 million, compared to $19.3 million in the same period last year[13] - Total capital expenditures decreased to $3.5 million from $4.2 million year-over-year, with physical store capital expenditures accounting for $1.96 million[8] Balance Sheet Changes - Total assets decreased to $1.005 billion from $1.071 billion, while total liabilities decreased to $860.8 million from $989.8 million year-over-year[3] - Stockholders' equity increased to $144.4 million from $81.1 million, primarily due to an increase in additional paid-in capital[3] Debt and Extinguishment - The company recognized a $55.2 million loss on extinguishment of debt related to the June 10, 2024 Term Loan debt conversion[6]

Business Operations - Barnes & Noble Education, Inc. operates 1,164 physical and virtual bookstores, serving over 5.7 million students[85]. - The Wholesale Segment distributes textbooks to approximately 2,650 physical bookstores and 507 virtual bookstores, making it one of the largest textbook wholesalers in the U.S.[93]. - The company plans to scale the number of schools adopting the First Day Complete program in Fiscal 2025 and beyond, following successful adoption in Fiscal 2024[92]. - Enrollment trends showed an increase year-over-year in Fall 2023 and Spring 2024, particularly at community colleges, which is expected to positively impact business growth[97]. - The company aims to enhance e-commerce capabilities through partnerships with Fanatics and Lids, driving growth in general merchandise sales[85]. Financial Performance - Total sales for the 13 weeks ended July 27, 2024, were $263.431 million, a slight decrease from $264.161 million in the same period last year[104]. - The net loss from continuing operations was $99.479 million, compared to a loss of $49.971 million in the prior year, indicating a significant increase in losses[104]. - Adjusted EBITDA for continuing operations improved to a loss of $20.680 million from a loss of $25.885 million year-over-year, showing a reduction in operational losses[104]. - The gross margin decreased to 17.9% from 19.2% year-over-year, indicating a decline in profitability[105]. - Selling and administrative expenses as a percentage of total sales were 25.4%, down from 29.3% in the previous year, suggesting improved cost management[105]. Sales and Revenue Trends - The BNC First Day affordable textbook access programs generated total sales of $81.4 million in the 13 weeks ended July 27, 2024, a 32% increase from $61.8 million in the same period in 2023[90]. - First Day Complete sales reached $34.7 million, up 36% from $25.5 million year-over-year[90]. - Course material product sales increased by $13.6 million, or 9.8%, to $152.1 million during the 13 weeks ended July 27, 2024, driven by BNC First Day programs[116]. - Total BNC First Day sales increased by $19.6 million, or 32%, to $81.4 million compared to $61.8 million in the prior year[117]. - Retail sales decreased by $4.2 million, or 1.7%, to $249.7 million during the 13 weeks ended July 27, 2024, from $245.5 million in the prior year[116]. Cost and Expenses - The cost of sales increased to 82.1% of total sales, up from 80.8% in the prior year, reflecting rising costs in merchandise and operations[105]. - Selling and administrative expenses decreased by $10.5 million, or 13.5%, to $67.0 million from $77.5 million during the same period last year[130]. - The operating loss increased to $(91.7) million, or (34.9)% of sales, compared to $(41.7) million, or (15.8)% of sales in the prior year[138]. - Net interest expense decreased by $0.6 million to $7.6 million during the 13 weeks ended July 27, 2024, primarily due to lower borrowing and interest rates[139]. Strategic Initiatives - The company is focusing on expanding its BNC First Day affordable textbook access programs, which have reversed historical revenue declines in course materials[99]. - The company anticipates continued growth from new physical and virtual store openings, driven by new account awards[99]. - The company is facing increasing competition from alternative sources for course materials, impacting traditional distribution channels[98]. - The company closed 111 stores during the 13 weeks ended July 27, 2024, as part of a strategic initiative to close under-performing locations[116]. Cash Flow and Financing - Recent financing arrangements included a private equity investment and a Credit Facility refinancing to enhance capital flexibility and support growth initiatives[91]. - Cash flows used in operating activities from continuing operations were $(143.992) million for the 13 weeks ended July 27, 2024, compared to $(119.858) million for the same period in 2023, an increase in cash outflows of 20.1%[153]. - Free cash flow (non-GAAP) for the 13 weeks ended July 27, 2024, was $(152.398) million, compared to $(129.956) million for the same period in 2023, reflecting an increase in cash outflows of 17.1%[148]. - Cash flows from financing activities increased to $139.9 million for the 13 weeks ended July 27, 2024, compared to $93.2 million in the prior year, primarily due to $95.0 million in new equity capital raised[157]. - The company completed transactions on June 10, 2024, raising approximately $85.5 million in net cash proceeds after transaction costs, enhancing financial flexibility for future investments[158]. Losses and Restructuring - The company recognized a loss on extinguishment of debt of $55.2 million related to the conversion of approximately $34.0 million of outstanding principal into common stock[136]. - The company recognized restructuring and other charges totaling $3.6 million, primarily related to severance costs following the resignation of the former CEO[137]. - Adjusted earnings (non-GAAP) were $(41.5) million during the 13 weeks ended July 27, 2024, compared to $(44.4) million in the prior year[141]. - Net loss for the same period was $(99.5) million, including a $(55.2) million loss on extinguishment of debt, compared to a net loss of $(50.0) million in the prior year[110]. Tax and Compliance - The company recognized a current income tax receivable of $15.8 million and $8.5 million in refunds for Fiscal 2023 and Fiscal 2024, respectively[159]. - The company did not identify any changes in internal control over financial reporting that materially affected its operations during the first quarter[164]. - Management believes that pending legal proceedings are unlikely to have a material adverse effect on future financial results[166].

Core Viewpoint - Purcell & Lefkowitz LLP is investigating Barnes & Noble Education, Inc. to determine if its directors breached fiduciary duties related to recent corporate actions [1]. Group 1 - The investigation is on behalf of the shareholders of Barnes & Noble Education, Inc. [1] - The law firm specializes in representing shareholders affected by securities fraud and breaches of fiduciary duty [3]. - Shareholders seeking more information can contact the firm for free [2].

Revenue Growth - BNC First Day total revenue increased by $127 million, or 37%, to $474 million in Fiscal 2024 compared to $347 million in the prior year[8]. - BNC First Day Complete sales increased by 48% to $292.7 million in Fiscal 2024 from $197.8 million in Fiscal 2023[29]. - Total BNC First Day sales rose by 37% to $473.9 million in Fiscal 2024 compared to $346.7 million in Fiscal 2023[29]. - Retail total sales increased by $23.2 million, or 1.6%, to $1,514.9 million during the 52 weeks ended April 27, 2024, compared to $1,491.7 million in the prior year[83]. - Course material product sales increased by $44.0 million, or 4.7%, to $972.0 million during the 52 weeks ended April 27, 2024, primarily due to the growth of BNC First Day programs, which increased by $127.2 million, or 36.7%[83]. Store Operations - The company closed 167 stores in the Retail Segment, with estimated annual sales of $109 million, as part of a strategic initiative to close under-performing stores[20]. - The number of campus stores offering First Day Complete grew by 38% to 160 from 116 year-over-year, with estimated enrollment increasing by 39% to 805,000[29]. - The company operates 707 physical campus bookstores and 538 virtual bookstore operations across the United States[38]. - The company operates 1,245 physical, virtual, and custom bookstores, serving over 5.8 million students[155]. Strategic Initiatives - The company plans to continue scaling the number of schools adopting the First Day Complete program in Fiscal 2025 and beyond[20]. - The company completed various transactions on June 10, 2024, to substantially deleverage its consolidated balance sheet and raise additional capital for strategic investments[13]. - The company has established agreements with major publishers to distribute digital content through BNC First Day programs[20]. - The partnership with Fanatics and Lids has enhanced product assortment and e-commerce capabilities, driving growth in logo merchandise sales[29]. Financial Performance - Cash flows used in operating activities from continuing operations during Fiscal 2024 were $(1.5) million, compared to $90.5 million in Fiscal 2023[94]. - As of April 27, 2024, total debt was $196.3 million, an increase from $182.2 million as of April 29, 2023[96]. - The company recognized an impairment charge of $7.2 million related to long-lived assets at certain stores during fiscal year 2024[114]. - The accumulated deficit increased from $(593,356) to $(656,567)[117]. Market Trends - Approximately 27% of college and university affiliated bookstores in the U.S. are operated by their respective institutions, indicating a potential market for outsourcing[20]. - The retail business is highly seasonal, with the majority of sales and operating profit occurring in the second and third fiscal quarters, particularly during textbook purchasing periods[53]. - The company faces competition from various vendors, including Follett Corporation and direct-to-student channels like Amazon and Chegg.com[67]. - The company noted that many colleges and universities are shifting to online and hybrid learning options, impacting on-campus activity and enrollment[202]. Inventory and Asset Management - The company has a large inventory of approximately 235,000 unique textbook titles and processes over 21 million textbooks annually[46]. - The company utilizes sophisticated inventory management platforms to optimize pricing and inventory across all stores, minimizing out-of-stock situations[61]. - The Wholesale Segment supports approximately 2,750 physical bookstores and 538 virtual bookstores, providing a comprehensive selection of new and used textbooks at lower costs[54]. - The company recognized lease assets and liabilities for operating leases based on the present value of future lease payments, in compliance with ASC Topic 842[168]. E-commerce and Digital Strategy - The company anticipates continued growth in its e-commerce capabilities through strategic relationships with service providers like Fanatics[8]. - The company has transitioned the fulfillment of logo merchandise sales to Lids and Fanatics, recognizing commission revenue on a net basis since April 2021[170]. - Revenue from service and other activities includes brand marketing services, shipping and handling, and non-return rental penalty fees[138]. Debt and Capital Management - The company borrowed $563.0 million and repaid $552.2 million under the Credit Agreement during the 52 weeks ended April 27, 2024[99]. - The company authorized a stock repurchase program of up to $50 million, with approximately $26.7 million remaining available as of April 27, 2024[135]. - The company expects to receive additional tax refunds of approximately $2.4 million in Fiscal 2025, following refunds of $8.5 million in Fiscal 2024[102].