Scholastic's Fourth Quarter: Sunrise on the Reaping Helps Boost Revenues 7%
In the fourth quarter ended May 31, revenues at Scholastic rose 7%, to $508.3 million, and operating income rose 13%, to $53.5 million. For the fiscal year ended May 31, revenues rose 2%, to $1.6 billion, and operating income rose 9%, to $15.8 million.
Peter Warwick, president and CEO, called Scholastic's 2025 fiscal year results "solid," and pointed to the "continued strength in children's book publishing and distribution," which combined with "successful execution and disciplined cost management, helped offset macroeconomic pressures on school spending, which continued to impact the education division."
In the fourth quarter, children's book publishing and distribution revenues rose 9%, to $288.2 million. Consolidated trade revenues jumped 19%, to $97.3 million, reflecting the popularity of the fifth book in Suzanne Collins's Hunger Game series, Sunrise on the Reaping. The gains came despite "continued pressure on consumer spending in the retail book market." Collins's book also helped Scholastic's international sales, which increased 9%, to $76.8 million, despite unfavorable foreign currency exchange rates. Book fair revenues rose 5%, to $177.8 million, "reflecting higher fair count." Book club revenues dropped 9%, to $13.1 million.
The fiscal year gain of 2% came primarily from "the contribution of 9 Story Media Group, recorded in the entertainment segment, higher revenues from new releases in trade publishing, which offset softness in the overall retail market, and strong performance in book fairs. These gains were partly offset by lower supplemental product sales in education solutions."
Warwick said that the "global success of Sunrise on the Reaping... showcased Scholastic's unmatched leadership in creating enduring children's book franchises." He added that the recent merger of trade publishing, book fairs, and book clubs into a unified Children's Book Group "will unlock even more opportunities to deepen engagement with kids and families across all channels...
"We are entering fiscal 2026 with strong momentum, which will include the November release of the next title in the best-selling Dog Man series and a growing slate of content development and production commitments."
Scholastic noted again that it is considering sale-leaseback transactions for the office and retail space it owns in New York City as well as its distribution center in Jefferson City, Mo.