Home Business Booms at EDC
Staff -- Publishers Weekly, 7/23/2001
Educational Development Corp. continues to benefit from Dorling Kindersley's decision to abandon the home sales market. For the first quarter ended May 31, 2001, revenues in EDC's home business division increased 28.7%, to $2.8 million, while pretax earnings rose 26.5%, to $605,200. The company attributed the gain to the increase of its home division sales force, where sales commissions rose 28.2% in the quarter. Sales through the company's publishing division fell 3.6%, to just under $2 million, due in part to a soft retail market. Pretax earnings slipped 4.0%, to $751,900. Total company sales were up 12.9% in the period, to $4.8 million, with net income ahead 33.8% to $369,500.
EDC reported that the sales momentum in its home business division carried into June, with revenues jumping 62%, while sales through retail outlets fell 19%. Total revenues for the month were up 18%.
