Varsity Group reported jumps in sales and earnings for the third quarter ended September 30. Revenue rose 49% in the period, to $21.5 million, while net income jumped 78%, to $14.4 million. The company now generates virtually all of its sales via its eduPartners program, through which it serves as the online bookstore for private high schools and small colleges.
Varsity operated online stores for about 210 institutions in this year's third quarter, up from 140 last year.
With its strong third quarter, Varsity said it expects its financial performance in 2003 to be "significantly" better than in 2002, when it had sales of $16.6 million and the first profits in its history, of $661,000. For this year's nine-month period, sales were up 50%, to $23.2 million, and net income jumped 136%, to $3.3 million.
Varsity's Dan Rush said the company has not benefited from the recent controversy over textbook prices. Schools sign with Varsity because they don't want to be in the retail business, Rush said. He noted that Varsity's old business model, into which the company sank millions of dollars, attempted to sell textbooks directly to college students. While Rush said Varsity has "aggressive plans" to move forward, they involve adding more online stores, not students.
