In the second quarter ended November 30, revenues at Scholastic rose 1%, to $551.1 million, and operating income rose 11%, to $82.9 million.
The gains in revenue came, the company said, from "strength in the children's book publishing and distribution segment, including higher revenues in book fairs and trade publishing, partly offset by lower education solutions sales in a continued volatile federal and state funding environment."
The children's book publishing and distribution segment's revenues increased 4%, to $380.9 million. Book fair revenues rose 5%, to $242 million, driven by increased fair count and revenue per fair. Book club revenues fell 14%, to $28.5 million, "primarily reflecting lower sponsors." Consolidated trade revenues rose 7%, to $110.4 million, due in large part to the 14th title in Dav Pilkey's Dog Man series, Big Jim Believes, and ongoing solid sales in the Hunger Games and Harry Potter franchises.
Peter Warwick, president and CEO, said in part, "Over the past four years, Scholastic has been remade with a singular purpose: realizing the power of our unmatched brand, IP, channels and balance sheet for long-term growth, impact and value creation....
"Under a new management team and a refreshed board, we have reorganized and rebuilt Scholastic to operate more efficiently, create new ways to reach kids and families--with books at home and in schools as well as on screens--and maximize the value of our iconic children's content and trusted brand, which we have built over a century. As a result of this hard work, today Scholastic is uniquely positioned to meet families, educators and our society's essential need to help kids read, learn and have fun."
The company said it expects full-year revenue to be "in line with or modestly above the prior year, reflecting solid growth within its children's book publishing and distribution segment, offset by lower year-to-date sales in education solutions."