Scholastic's revenues fall in first quarter

<p>Scholastic has called its first quarter results &quot;solid&quot; despite sales falling by 7.8%, with trade revenue rising 9% and international revenue up.<br /><br />Turnover in the first quarter ended 31st August was $290.9m versus $315.6m in the prior year period. The children&#39;s publisher stated it &quot;typically records a seasonal loss in its fiscal first quarter, when most schools are not in session and its School Book Clubs and Fairs generate minimal revenue&quot;.<br /><br />Richard Robinson, chairman, president and chief executive officer, said: &quot;After a solid first quarter, Scholastic is on plan to sustain last year&#39;s strong performance. We are accelerating investment in educational technology, ecommerce and ebooks, as we use the company&#39;s strong free cash flow and balance sheet to increase long-term shareholder returns.&quot; <br /><br />For its children&#39;s book publishing and distribution segment revenue was $72.8m, compared to $76.2m in the prior year period. However trade revenue rose 9% due to a &quot;successful front-list&quot;.<br /><br />International sales for the quarter was $81.9m, up from $75.6m in the prior year period, reflecting a $3.2m foreign exchange benefit, as well as strong sales in Australia and Canada. <br /><br />Robinson said trade sales were &quot;particularly strong&quot; and highlighted the release of <em>Mockingjay</em> by Suzanne Collins as partly reason for this. <br /><br />He added: &quot;While School Book Clubs and Fairs are just ramping up for the new school year, early customer metrics, including fair bookings and Book Club sponsor numbers, are positive. We also achieved important milestones for our digital growth initiatives, rolling out our new online platform to all Book Club teachers and parents, and moving forward with our plan to launch a children&rsquo;s ebook offering by fiscal year-end.&quot;</p>