Scholastic results 'in line' with expectations

Scholastic results 'in line' with expectations

Scholastic Corp said the first quarter of 2015 was in line with expectations, with sales increasing slightly (0.4%) compared the same period of 2014. International sales fell due to unfavourable foreign exchange rates.

For the period ending 31st August 2015, revenues were to $191.2m (£125.6m), compared to $190.5m (£125.1m) one year previously. Operating profit declined 8.4% to $79.5m (£52.2m) from $86.8m (£57m) – a drop of 8.4%.

However, Scholastic usually records a loss during this period because a large part of its business is selling direct to schools, and most schools are not in session during the first fiscal quarter.

"Operating results were in line with our expectations for the seasonally small quarter.  We were pleased with the solid growth in our trade business, both in the US and internationally, confirming the expanding market for quality children's books," said Richard Robinson, chairman, president and c.e.o.  

He continued: “The need for more books that kids want to read is a key growth driver for all of our businesses, including our education segment which delivered first quarter gains in classroom books and summer reading book packs.”

Revenues from the international division, which includes Scholastic UK, declined 14%, from $84.7m (£55.6m) to $73.1m (£48m), because of the strength of the US dollar. Sales in local currencies were up in Australia, India, Indonesia, Malaysia and the Philippines.

The company also decreased its operating loss from the international division, as it was $2.7m (£1.8m) in the first quarter, compared to $3m (£2m) in the first quarter of 2015.