Barnes & Noble Education Continues its Strong Expansion of First Day® Affordable Access Programs

Rhea-AI Summary

Barnes & Noble Education (NYSE: BNED) reported significant growth in its First Day® affordable access programs. First Day® Complete, offered at 183 campus stores serving 925,000 students in fall 2024 (up from 800,000 in 2023), provides all course materials in one bundle at 35-50% savings. Eight additional campus stores will join in spring 2025. The company's First Day® (by Course) program expanded to 230 campus stores. Q2 FY2025 First Day program revenues increased 18% YOY to $235 million. Student survey results showed strong satisfaction: 91% found the bundled materials convenient, 84% felt better prepared, and 81% reported positive impact on academic success.

Positive

• First Day program revenues increased 18% YOY to $235 million in Q2 FY2025
• Student enrollment in First Day Complete program grew from 800,000 to 925,000 students
• Program expansion to 183 campus stores with 8 more committed for spring 2025
• Students save 35-50% on course materials through First Day Complete program
• 91% of surveyed students reported convenience benefits

Negative

• None.

Insights

Financial Analyst

The significant expansion of BNED's First Day® program shows strong business momentum with $235 million in Q2 FY25 revenues, up 18% year-over-year. The program's reach now extends to 183 campus stores serving 925,000 students, up from 800,000 last year, with 8 additional stores committed for spring 2025.

The high adoption rates and positive survey results (91% convenience satisfaction, 87% recommendation rate) indicate strong product-market fit and potential for sustained growth. The program's cost-saving proposition of 35-50% for students creates a compelling value proposition that could drive further institutional adoption.

With nearly 1,200 total stores in their network and current First Day® penetration at only ~15%, there's substantial room for expansion. The diverse distribution across institution types and sizes suggests broad market applicability, reducing concentration risk.

Market Research Analyst

The education materials market is undergoing a significant shift toward digital and subscription-based models. BNED's First Day® program addresses key pain points: affordability, accessibility and convenience. The strong survey results, particularly the 72% of students reporting better grades and increased likelihood of continuing education, suggest the program creates meaningful value for all stakeholders.

The program's expansion across 34 states and various institution types demonstrates scalability. The balanced distribution across institution sizes (26% small, 24% medium-small, 22% medium-large, 28% large) indicates the model works regardless of scale, which is important for long-term growth potential.

New Research Highlights Positive Impact on Affordability and Student Outcomes

BASKING RIDGE, N.J., Nov. 19, 2024 (GLOBE NEWSWIRE) -- Barnes & Noble Education, Inc. (NYSE: BNED), a leading solutions provider for the education industry, today announced the rapid and continued growth of its industry-leading First Day^® affordable access programs and new research data that highlight the positive impact the programs have on course material affordability and student outcomes.

Barnes & Noble College (BNC) First Day Affordable Access Programs Seeing Rapid Growth

• BNC’s First Day^® Complete equitable access model was offered at 183 campus stores in the fall 2024 academic term, representing approximately 925,000 undergraduate and postgraduate students*, up from 800,000 in fall 2023
• Eight net additional campus stores have committed to transitioning to First Day Complete for the spring 2025 academic term
• BNC’s First Day^® (by Course) offered through 230 campus stores in the fall 2024 academic term
• 2024 proprietary student research underscores the significant benefits of the First Day affordable access models on student outcomes
• In the second quarter fiscal year 2025, First Day program revenues increased 18% YOY to $235 million
  

First Day Complete

Through its equitable access program, First Day Complete, BNC partners with colleges and universities to provide all students with all course materials needed for the term in one convenient bundle on or before the first day of class. Course material costs are included as part of tuition or applied as a course charge, saving students an average of 35-50 percent.

First Day Complete continues to see rapid growth in institutional adoption, with a total of 183 campus stores utilizing First Day Complete in the fall 2024 term with a total enrollment of approximately 925,000 students, up from 800,000 in the prior year. As a result of First Day Complete’s continued positive impact on student outcomes, eight net additional campus stores have committed to transitioning to First Day Complete in the spring 2025 term.

“We are excited to welcome a record number of institutions to the First Day Complete program,” said Jonathan Shar, Chief Executive Officer, Barnes & Noble Education. “We are seeing tremendous demand for First Day Complete across all sectors and sizes of institutions and, with a strong pipeline of institutions that are currently evaluating how to best implement the program, we expect this momentum to continue, given the demonstrated impact on student outcomes through improved affordability, access and convenience.”

The 183 campus stores offering the First Day Complete equitable access model are distributed across 34 states, of which 32 percent are four-year state colleges or universities, 36 percent are four-year private colleges or universities, and 32 percent are two-year state community colleges or technical colleges. Additionally, the range of student enrollment at these institutions includes:

• 26% have less than 2,000 students
• 24% have between 2,000 and 3,999 students
• 22% have between 4,000 and 9,999 students
• 28% have greater than 10,000 students

First Day

BNC’s inclusive access program, First Day – which is adopted by an individual faculty member for a single course and where students receive primarily digital course materials through their school's learning management system (LMS) – also saw strong growth. BNC’s First Day was offered at 230 campus stores in the fall 2024 academic term.

Survey Highlights First Day Complete’s Positive Impact

Through its proprietary research platform, BNC Insights, BNC conducted an online survey for students who participated in the First Day Complete program during the 2023-2024 academic year. Based on responses across more than 100 campus stores, and representing students from community colleges, four-year public and four-year private institutions, students provided strong positive feedback on First Day Complete and its impact on their academic success:

• 91% stated they found it convenient to have their course materials bundled
• 84% stated they were better prepared for the academic term
• 81% stated equitable access/First Day Complete had a positive impact on their success during the term
• 72% stated equitable access/First Day Complete helped them achieve better grades during the term
• 72% stated equitable access/First Day Complete increases the likelihood they will continue their education at the school
  

For students who felt First Day Complete enabled them to achieve better grades, they noted the improved convenience, access and reduction in stress because of the program.

“I didn't have any worry about picking up my course materials, I knew they would be prepared on time. I most likely wouldn’t have gotten the materials I did unless it was through the program.” (Student, Albion College)

Students also showed a strong likelihood to recommend and participate in First Day Complete again, with 87 percent of students saying they would recommend the course material program and 89 percent saying they would participate in the program again. Students cited affordability, convenience and preparedness for the semester as the primary reasons for praising the equitable access model.

“Textbooks are expensive, so having this program makes it more affordable and possible for me to purchase all of my books without using multiple vendors or spending an extensive amount of time searching other places that have the correct materials for cheaper.” (Student, University of North Carolina, Greensboro)

Feedback from schools has been equally strong:

“The First Day Complete program has enhanced the student experience at Tulane by improving the convenience of getting all course materials. First Day Complete has simplified the process of acquiring course materials at the beginning of the term and has provided a predictable, lower-cost option for our students.” — Brian Johnson, Associate Vice President for Campus Operations, Tulane University

To hear more about what students, faculty and administrators say about their experiences using First Day Complete, and how it has positively impacted their institutions, watch the video here.

Discover how colleges and universities are finding success with BNC’s First Day Complete by visiting our collection of equitable access case studies.

Barnes & Noble Colege, a Barnes & Noble Education company, operates nearly 1,200 physical and virtual college and university bookstores and serves approximately six million students nationwide. For more information about BNC’s campus retail services and academic solutions, visit www.bncollege.com.

*As reported by National Center for Education Statistics (NCES)

ABOUT BARNES & NOBLE EDUCATION, INC.
Barnes & Noble Education, Inc. (NYSE: BNED) is a leading solutions provider for the education industry, driving affordability, access and achievement at hundreds of academic institutions nationwide and ensuring millions of students are equipped for success in the classroom and beyond. Through its family of brands, BNED offers campus retail services, academic solutions, wholesale capabilities and more. BNED is a company serving all who work to elevate their lives through education, supporting students, faculty and institutions as they make tomorrow a better and smarter world. For more information, visit www.bned.com.

Media Contact:
Judith Buckingham
Corporate Communications
jbuckingham@bned.com

Source: Barnes & Noble Education

FAQ

What was BNED's First Day program revenue growth in Q2 FY2025?

Barnes & Noble Education's First Day program revenues increased 18% year-over-year to $235 million in Q2 FY2025.

How many students are enrolled in BNED's First Day Complete program as of fall 2024?

As of fall 2024, approximately 925,000 students are enrolled in BNED's First Day Complete program, up from 800,000 in fall 2023.

What percentage do students save through BNED's First Day Complete program?

Students save an average of 35-50% on course materials through BNED's First Day Complete program.

How many campus stores offer BNED's First Day Complete program in fall 2024?

183 campus stores offer BNED's First Day Complete program in fall 2024, with eight additional stores committed for spring 2025.