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. BARK had a negative return on equity of 35.25% and a negative net margin of 8.42%.The company had revenue of $78.81 million during the quarter, compared to the consensus estimate of $77.50 million.

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 Stock Performance

Shares of NYSE BARK traded up $2.09 during midday trading on Friday, reaching $11.25. The company’s stock had a trading volume of 217,898 shares, compared to its average volume of 42,203. The company has a market cap of $101.60 million, a P/E ratio of -3.14 and a beta of 1.95. The business’s 50 day moving average price is $9.52 and its two-hundred day moving average price is $11.71. BARK has a fifty-two week low of $8.15 and a fifty-two week high of $20.79.

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On BARK

Hedge funds have recently added to or reduced their stakes in the stock. Brevan Howard Capital Management LP bought a new position in BARK in the 2nd quarter valued at about $32,000. XTX Topco Ltd bought a new stake in shares of BARK during the 4th quarter worth approximately $38,000. BNP Paribas Financial Markets lifted its holdings 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 acquiring an additional 38,526 shares during the period. Cerity Partners LLC boosted its position in shares of BARK by 58.1% during the 2nd quarter. Cerity Partners LLC now owns 55,405 shares of the company’s stock worth $49,000 after acquiring an additional 20,359 shares in the last quarter. Finally, Renaissance Technologies LLC boosted its position in shares of BARK by 92.2% during the 4th quarter. Renaissance Technologies LLC now owns 96,500 shares of the company’s stock worth $58,000 after acquiring an additional 46,300 shares in the last quarter. Institutional investors own 28.76% of the company’s stock.

About BARK

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.