Scholastic reported "strong revenue growth and higher earnings" during an earnings call on December 16, with second quarter fiscal 2023 revenue up 12% to $587.9 million over the comparable period. The company's fiscal second quarter ended November 30.

With higher revenue and profit contributions from its children's book publishing and distribution segment, the company reported that its operating income increased 20%, to $100.1 million; its adjusted EBITDA increased by $14.8 million, to $122.3 million. In addition to higher sales, Scholastic said the gains in earnings come from its "efforts to address inflationary pressures with cost containment and pricing related initiatives."

President and CEO Peter Warwick said the company's gains in the quarter reflect the strength of Scholastic's brand, improved operating efficiencies, and investments in long-term growth.

"Our Children’s Books business performed strongly, benefiting from robust sales in our unique school-based channels, as well as multiple best sellers and our broad backlist," said Warwick. "In Education Solutions, sales of print and digital educational products to schools, districts and states held steady at last year’s record levels, as we continued investing in the long-term potential of this key growth opportunity, building go-to-market capabilities and developing our comprehensive digital literacy platform."

In the quarter, the company reported that its children’s book publishing and distribution segment increased revenue 19%, to $418.3 million. The division's book fairs channel is benefitting from improved marketing efforts and better warehouse optimization, the company reported and sales jumped 37%, to $240.8 million; Scholastic noted that its fair count continues to hover at "85% of pre-pandemic levels compared to 70% in the prior period."

Trade revenue fell 4%, to $119.9 million, with the "current fiscal period benefited from the release of Dav Pilkey’s Cat Kid Comic Club#4, and the new illustrated edition of Harry Potter and the Order of the Phoenix," the company reported. Book club revenues increased 11%, to $57.6 million, and the company reported higher revenue-per-event despite lower teacher participation.

Given the strength in the quarter and its fourth quarter expectations, Scholastic affirmed its fiscal 2023 guidance for Adjusted EBITDA of "$195 million to $205 million and revenue growth of 8% to 10%."