Sales declined in both its publishing and home business divisions, dropping total revenue at Educational Development Corp. 8.0% in the third quarter ended November 30, 2004, to $9.2 million. Earnings fell to $809,400 from $871,1000.
EDC chairman Randall White acknowledged a "softening demand" during the late summer and early fall, which was excerbated by hurricanes that reduced the number of events held by its sales consultants. As a result, sales in the home business divison fell 8.5%, to $7.5 million, in the quarter. Sales in the publishing unit fell 7.0%, to $1.6 million, due in part to the failure to replace a large order received in last year's third quarter.
White said sales began to show improvement in November and that the trend continued through December and into early January. To help maintain the momentum, White said EDC has increased its marketing and sales budget to increase the visibilty of EDC's Usborne titles in the marketplace.
