Reduced promotional spending impacts sales

  • Scholastic’s 2Q revenue falls in back-to-school period
  • Profit of $76.9 million, compared to $75.3 million last year
  • Revenue decreased by 4% to $562.6 million
  • Reduced promotional spending and eliminated unprofitable orders
  • Lower participation and spending in school reading events division

Scholastic, the New York-based children’s-book publisher, reported a decline in revenue during the back-to-school quarter. The company’s profit for the quarter ended Nov. 30 was $76.9 million, compared to $75.3 million in the same period last year. Revenue decreased by 4% to $562.6 million. This decline was attributed to reduced promotional spending and the elimination of unprofitable orders in book clubs. Scholastic’s school reading events division also experienced lower participation and spending, leading to lower-than-expected profit growth. The company anticipates this trend to continue for the remainder of the school year.

Public Companies: Scholastic (N/A)
Private Companies:
Key People: Peter Warwick (Chief Executive)

Factuality Level: 8
Justification: The article provides specific financial figures and quotes from the company’s CEO, indicating that the information is based on factual data. However, it does not provide any additional sources or perspectives to verify the claims made by the company.

Noise Level: 7
Justification: The article provides some relevant information about Scholastic’s sales and profit in the back-to-school quarter. However, it lacks in-depth analysis, evidence, and actionable insights. It does not explore the long-term trends or consequences of the company’s decisions. The article also does not provide information on systems that can withstand or benefit from shocks and unexpected events. Overall, it contains some noise and lacks intellectual rigor.

Financial Relevance: Yes
Financial Markets Impacted: Scholastic

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Scholastic’s sales and profit performance.

Reported publicly: www.marketwatch.com