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Segment Reporting (Notes)
 6 Months Ended
Oct. 28, 2023
Segment Reporting
Note 4. Segment Reporting
During the fourth quarter of Fiscal 2023, assets related to our DSS Segment met the criteria for classification as Assets Held for Sale and Discontinued Operations and is no longer a reportable segment. For additional information, see Note 2. Summary of Significant Accounting Policies.
We have two reportable segments: Retail and Wholesale. Additionally, unallocated shared-service costs, which include various corporate level expenses and other governance functions, are not allocated to a specific reporting segment and continue to be presented as “Corporate Services”.
We identify our segments in accordance with the way our business is managed (focusing on the financial information distributed) and the manner in which our chief operating decision maker allocates resources and assesses financial performance. The following summarizes the two segments. For additional information about each segment's operations, see Part I - Item 1. Business in our Annual Report on Form 10-K for the fiscal year ended April 29, 2023.
Retail Segment
The Retail Segment operates 1,271 college, university, and K-12 school bookstores, comprised of 717 physical bookstores and 554 virtual bookstores. Our bookstores typically operate under agreements with the college, university, or K-12 schools to be the official bookstore and the exclusive seller of course materials and supplies, including physical and digital products. The majority of the physical campus bookstores have school-branded e-commerce websites which we operate independently or along with our merchant service providers, and which offer students access to affordable course materials and affinity products, including emblematic apparel and gifts. The Retail Segment offers our BNC First Day® equitable and inclusive access programs, consisting of First Day Complete and First Day, which provide faculty required course materials on or before the first day of class at a discounted rate, as compared to the total retail price for the same course materials if purchased separately. The BNC First Day discounted price is offered as a course fee or included in tuition. Additionally, the Retail Segment offers a suite of digital content and services to colleges and universities, including a variety of open educational resource-based courseware.
Wholesale Segment
The Wholesale Segment is comprised of our wholesale textbook business and is one of the largest textbook wholesalers in the country. The Wholesale Segment centrally sources, sells, and distributes new and used textbooks to approximately 2,900 physical bookstores (including our Retail Segment's 717 physical bookstores) and sources and distributes new and used textbooks to our 554 virtual bookstores. Additionally, the Wholesale Segment sells hardware and a software suite of applications that provides inventory management and point-of-sale solutions to approximately 330 college bookstores.
Corporate Services represents unallocated shared-service costs which include corporate level expenses and other governance functions, including executive functions, such as accounting, legal, treasury, information technology, and human resources.
Intercompany Eliminations
The eliminations are primarily related to the following intercompany activities:
•The sales eliminations represent the elimination of Wholesale sales and fulfillment service fees to Retail and the elimination of Retail commissions earned from Wholesale, and
•These cost of sales eliminations represent (i) the recognition of intercompany profit for Retail inventory that was purchased from Wholesale in a prior period that was subsequently sold to external customers during the current period and the elimination of Wholesale service fees charged for fulfillment of inventory for virtual store sales, net of (ii) the elimination of intercompany profit for Wholesale inventory purchases by Retail that remain in ending inventory at the end of the current period.
Our international operations are not material, and the majority of the revenue and total assets are within the United States.
Summarized financial information for our reportable segments is reported below:
13 weeks ended26 weeks ended
October 28, 2023October 29, 2022October 28, 2023October 29, 2022
Sales
Retail$599,336 $598,610 $844,796 $835,117 
Wholesale20,973 21,120 59,764 58,203 
Eliminations(9,930)(11,097)(30,020)(30,013)
Total Sales$610,379 $608,633 $874,540 $863,307 
Gross Profit
Retail$125,529 $129,502 $175,820 $183,495 
Wholesale6,090 5,455 11,884 12,354 
Eliminations4,623 3,184 (828)(1,703)
Total Gross Profit$136,242 $138,141 $186,876 $194,146 
Selling and Administrative Expenses
Retail$77,182 $90,086 $146,355 $169,090 
Wholesale3,492 3,867 6,880 7,998 
Corporate Services5,287 5,075 10,205 12,289 
Eliminations— (74)(3)(82)
Total Selling and Administrative Expenses$85,961 $98,954 $163,437 $189,295 
Depreciation and Amortization
Retail$8,911 $8,869 $17,877 $18,398 
Wholesale1,254 1,370 2,531 2,719 
Corporate Services10 17 20 35 
Total Depreciation and Amortization$10,175 $10,256 $20,428 $21,152 
Restructuring and Other Charges
Retail$29 $— $555 $— 
Wholesale— — 526 — 
Corporate Services4,245 260 7,826 635 
Total Restructuring and Other Charges$4,274 $260 $8,907 $635 
Operating Income (Loss)
Retail$39,407 $30,547 $11,033 $(3,993)
Wholesale1,344 218 1,947 1,637 
Corporate Services(9,542)(5,352)(18,051)(12,959)
Elimination 4,623 3,258 (825)(1,621)
Total Operating Income (Loss)$35,832 $28,671 $(5,896)$(16,936)
Interest Expense, net$10,664 $4,886 $18,918 $8,754 
Total Income (Loss) from Continuing Operations Before Income Taxes$25,168 $23,785 $(24,814)$(25,690)