Sales at Educational Development Corp. fell to $27.2 million in the fiscal year ended February 28 from $28.7 million in fiscal 2010. Earnings declined to $1.2 million from $1.9 million. The sales declined came in EDC’s Usborne Books and More division where sales fell to $17.4 million from $19.2 million. Sales in the publishing division rose 3.4%, to $9.8 million.
Sales in the UBAM division fell in all sales channels: revenue from home shows declined 16% primarily due to 17% fewer orders offset by per-order averages which were up 2%; revenue from direct sales declined 17%; sales to schools and libraries decreased 1%; and Internet sales decreased 8%. The number of home reps fell to 6,200 from 8,000.
In the publishing division, the sales gain was due to a 9.7% increase in sales to smaller stores offset by a 0.7% decline in sales to chain stores. EDC noted it took a $340,000 bad debt allowance to cover the Borders’s bankruptcy.
Despite the decline in the UBAM division in fiscal 2011, EDC said the division, because of its unique position, represents the company’s best chance for growth.
