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NEW YORK - Scholastic Corporation (NASDAQ: SCHL), a leading global children’s publishing, education, and media company currently valued at $460 million, has unveiled a significant reorganization by merging its Trade Publishing, Book Fairs, and Book Clubs divisions into a unified Children’s Book Group. The strategic move, effective from June 1, 2025, aims to enhance the company’s reach to young readers and leverage its intellectual property (IP) across various platforms. According to InvestingPro data, the company maintains a healthy gross profit margin of 56% and has consistently paid dividends for 18 consecutive years.
Sasha Quinton, previously President of School Reading Events at Scholastic, will spearhead the new group as Executive Vice President and President. Quinton’s leadership has been marked by an increase in profitability and record revenues within the Book Clubs and Book Fairs sectors. Her new role will see her overseeing Trade Publishing as well, reporting directly to Peter Warwick, Scholastic President and CEO.
Warwick expressed optimism about the reorganization, emphasizing the importance of a seamless strategy across media, publishing, and distribution to connect authors and illustrators with their audience. He noted that this is a critical step in maintaining Scholastic’s presence in the lives of children for generations to come. While the stock has experienced a significant 33% decline over the past six months, InvestingPro analysis suggests the company is currently undervalued, with analysts maintaining a positive outlook and projecting profitability for the current fiscal year.
Quinton shared her enthusiasm for the opportunity to lead the integrated teams, highlighting Scholastic’s unique insight into children’s reading preferences. She emphasized that the new structure will facilitate reaching children through various channels, including book retailers, school-based fairs and clubs, and digital media.
In conjunction with these changes, Jackie De Leo will join the Scholastic Children’s Book Group as Publisher and Chief Merchant, starting June 2, 2025. De Leo, who previously served as Chief Merchandising Officer at Barnes & Noble, brings over 25 years of experience in the trade publishing and bookselling community. Her role at Scholastic will involve driving the company’s editorial vision and expanding the reach of its IP.
Scholastic plans to release more details on the Children’s Book Group’s organization and strategic direction when it announces its fiscal 2025 results and fiscal 2026 outlook in July. With current revenue of $1.59 billion and a solid current ratio of 1.23, indicating strong liquidity, the company appears well-positioned for this strategic transition. For deeper insights into Scholastic’s financial health and detailed analysis, investors can access comprehensive research reports and additional ProTips through InvestingPro’s premium service.
This news is based on a press release statement from Scholastic Corporation. The company, with a century-long history, is recognized for its role in promoting literacy and learning through children’s books and educational resources. Scholastic serves an international market, reaching over 135 countries, with a commitment to fostering lifelong readers and learners.
In other recent news, Scholastic Corporation reported its third-quarter fiscal 2025 earnings, showcasing a significant improvement by surpassing EPS expectations. The company achieved an EPS of -$0.13, outperforming the forecasted -$0.78, although its revenue of $335.4 million fell short of the anticipated $347.05 million. The company also announced the appointment of Chris Lick as Executive Vice President, General Counsel, and Corporate Secretary, effective June 1, 2025. This leadership change comes as Andrew Hedden retires after a 17-year tenure, transitioning to Senior Counselor. Additionally, Scholastic’s strategic initiatives and product innovations have been highlighted as contributors to its financial improvements, despite challenging market conditions. Analysts noted the company’s resilience, with a 4% revenue increase and a reduced net loss of $1.3 million compared to $23.3 million in the same quarter last year. Furthermore, Scholastic anticipates a full-year adjusted EBITDA of approximately $140 million with modest revenue growth, as stated by CFO Hadji Glover. The company also continues to navigate cautious consumer spending and potential tariff impacts, which remain a concern for future operations.
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