BARK (NYSE:BARK) Issues Earnings Results

BARK (NYSE:BARK) announced its quarterly earnings results on Thursday. The company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.40) by $0.48, Zacks reports. The company had revenue of $78.81 million during the quarter, compared to the consensus estimate of $77.50 million. BARK had a negative return on equity of 35.25% and a negative net margin of 8.42%.

Here are the key takeaways from BARK’s conference call:

• Profitability improved: Adjusted EBITDA was $0.6 million, up from $0.1 million year over year, while normalized gross margin remained strong at 63.4%.
• Revenue fell 23% year over year to $78.8 million, primarily because BARK entered the year with a smaller direct-to-consumer subscriber base; D2C orders excluding BARK Air declined approximately 28%.
• Underlying D2C indicators strengthened, with subscriber retention up more than 170 basis points and average order value increasing $0.45; management expects sequential top-line growth and a D2C inflection later in the fiscal year.
• BARK Air revenue rose 37% year over year to $3.2 million, with more than 90% of second-quarter seats already sold, while commerce is expected to accelerate with holiday demand and the upcoming Girl Scout Cookie program.
• Management reiterated full-year revenue and adjusted EBITDA guidance and highlighted new growth initiatives, including the Lixters enrichment platform, expanded Crocs products, and a Liquid Death pet collaboration.

BARK Price Performance

Shares of BARK traded up $2.09 during mid-day trading on Friday, hitting $11.25. 217,898 shares of the company’s stock were exchanged, compared to its average volume of 42,203. BARK has a 52 week low of $8.15 and a 52 week high of $20.79. The company has a market cap of $101.60 million, a PE ratio of -3.14 and a beta of 1.95. The company has a 50-day simple moving average of $9.52 and a 200 day simple moving average of $11.71.

Analysts Set New Price Targets

A number of equities research analysts recently commented on BARK shares. Weiss Ratings restated a “sell (e+)” rating on shares of BARK in a report on Monday. Lake Street Capital set a $12.00 target price on shares of BARK and gave the stock a “buy” rating in a research note on Wednesday, June 10th. Wall Street Zen upgraded BARK from a “sell” rating to a “hold” rating in a report on Sunday, July 12th. Finally, Jefferies Financial Group reissued a “buy” rating and issued a $19.00 price target on shares of BARK in a research note on Thursday, June 11th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $15.33.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Cerity Partners LLC lifted its holdings in BARK by 58.1% during the 2nd quarter. Cerity Partners LLC now owns 55,405 shares of the company’s stock valued at $49,000 after purchasing an additional 20,359 shares during the last quarter. Brevan Howard Capital Management LP acquired a new position in shares of BARK in the second quarter valued at $32,000. BNP Paribas Financial Markets lifted its stake in shares of BARK by 323.4% during the 3rd quarter. BNP Paribas Financial Markets now owns 50,438 shares of the company’s stock worth $42,000 after buying an additional 38,526 shares during the last quarter. Wells Fargo & Company MN raised its holdings in BARK by 74.9% in the 4th quarter. Wells Fargo & Company MN now owns 106,808 shares of the company’s stock valued at $64,000 after acquiring an additional 45,737 shares during the period. Finally, Renaissance Technologies LLC raised its holdings in BARK by 92.2% in the 4th quarter. Renaissance Technologies LLC now owns 96,500 shares of the company’s stock valued at $58,000 after acquiring an additional 46,300 shares during the period. Institutional investors and hedge funds own 28.76% of the company’s stock.

BARK Company Profile

BARK is a consumer products and services company focused on the canine market, offering a suite of subscription-based and direct?to?consumer offerings designed to meet the everyday needs of dogs and their owners. The company’s core business revolves around carefully curated boxes of toys, treats and chews, which are delivered monthly to subscribers through its flagship BarkBox service. Over time, BARK has expanded its reach beyond subscription, tapping into e-commerce and wholesale channels to broaden its customer base.

In addition to BarkBox, the company operates BarkShop, an online storefront that allows customers to purchase toys, grooming supplies and nutrition products on an a la carte basis.