Scholastic posts narrower-than-feared Q3 loss on strong book fair sales

Published 20/03/2025, 21:12
Scholastic posts narrower-than-feared Q3 loss on strong book fair sales

NEW YORK - Scholastic Corporation (NASDAQ:SCHL) reported a narrower-than-expected loss for its fiscal third quarter, driven by strong performance in its school book fairs business. The children’s publishing company’s shares rose 1.9% in after-hours trading following the results.

Scholastic posted a loss of $0.13 per share for the quarter ended February 28, significantly better than analysts’ expectations for a $0.78 per share loss. Revenue came in at $335.4 million, slightly below estimates of $347.05 million but up 4% year-over-year.

The company’s school book fairs segment saw an 8% revenue increase to $110.7 million, reflecting a higher number of fairs held compared to last year. Book clubs revenue also grew 14% to $15.2 million on increased order volumes.

"Scholastic achieved modest revenue growth and improved operating results in the third quarter," said CEO Peter Warwick. "Despite increasing pressure on family and school spending on books and educational materials, strong performance by School Book Fairs and Clubs, successful new titles and the addition of 9 Story Media Group contributed to positive results."

However, Scholastic narrowed its full-year adjusted EBITDA outlook to approximately $140 million, down from its previous range of $140-$150 million. The company now forecasts "modest" revenue growth for fiscal 2025, compared to earlier guidance of 4-6% growth.

Scholastic returned over $35 million to shareholders through share repurchases and dividends during the quarter. The board also increased the company’s share repurchase authorization to $100 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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