BARK (NYSE:BARK) Posts Earnings Results, Beats Expectations By $0.48 EPS

BARK (NYSE:BARK) posted its earnings results on Thursday, August 6th. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.40) by $0.48, Zacks reports. The firm had revenue of $78.81 million for the quarter, compared to analysts’ expectations of $77.50 million. BARK had a negative return on equity of 35.66% 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 Stock Up 0.8%

Shares of BARK stock traded up $0.08 on Monday, reaching $10.21. The company’s stock had a trading volume of 27,196 shares, compared to its average volume of 78,544. The company has a market capitalization of $92.21 million, a price-to-earnings ratio of -2.85 and a beta of 1.95. The firm’s fifty day simple moving average is $9.67 and its two-hundred day simple moving average is $11.14. BARK has a 52 week low of $8.15 and a 52 week high of $20.79.

Institutional Investors Weigh In On BARK

Several institutional investors have recently modified their holdings of the business. Cerity Partners LLC increased its holdings in shares of BARK by 58.1% in the second quarter. Cerity Partners LLC now owns 55,405 shares of the company’s stock worth $49,000 after purchasing an additional 20,359 shares during the last quarter. Brevan Howard Capital Management LP purchased a new stake in shares of BARK in the second quarter worth about $32,000. BNP Paribas Financial Markets boosted its stake in BARK by 323.4% during the third quarter. BNP Paribas Financial Markets now owns 50,438 shares of the company’s stock valued at $42,000 after buying an additional 38,526 shares during the last quarter. Wells Fargo & Company MN boosted its stake in BARK by 74.9% during the fourth quarter. Wells Fargo & Company MN now owns 106,808 shares of the company’s stock valued at $64,000 after buying an additional 45,737 shares during the last quarter. Finally, Renaissance Technologies LLC grew its holdings in BARK by 92.2% during the 4th quarter. Renaissance Technologies LLC now owns 96,500 shares of the company’s stock valued at $58,000 after buying an additional 46,300 shares in the last quarter. 28.76% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Wall Street Zen upgraded shares of BARK from a “sell” rating to a “hold” rating in a research note on Sunday, July 12th. Lake Street Capital set a $12.00 price objective on shares of BARK and gave the stock a “buy” rating in a research note on Wednesday, June 10th. Weiss Ratings restated a “sell (e+)” rating on shares of BARK in a report on Monday, August 3rd. Finally, Jefferies Financial Group reaffirmed a “buy” rating and set a $19.00 target price on shares of BARK in a research note on Thursday, June 11th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $15.33.

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.