Shares of Franklin Covey Co.
fell more than 6% in the extended session Thursday after the maker of management and organization products and services reported fiscal third-quarter sales below expectations and its quarterly loss was wider than expected as executives and educators switched to online learning amid closures to curb the spread of the coronavirus. Franklin Covey said it lost $11 million, or 79 cents a share, in the third quarter of fiscal 2020, compared with a loss of $2 million, or 14 cents a share, in the third quarter of fiscal 2019. Sales fell to $37.5 million in the quarter, compared with $56 million a year ago. Analysts polled by FactSet had expected a loss of 30 cents a share on sales of $49 million. All of the company’s business units “were adversely impacted by the closure of offices, schools, and other gathering places in the United States and in other countries” amid the pandemic, the company said. Training, coaching and consulting resulted in fewer sales for both its Enterprise and Education divisions; the Education division also missed out on fewer sales of materials and fewer coaching days as educators transitioned to online classes, it said. Shares of Franklin Covey ended the regular trading day down 5.4%.
View more information: https://www.marketwatch.com/story/franklin-coveys-sales-hampered-by-online-learning-closures-2020-07-09