Total sales at Educational Development Corp. for the fiscal year ended February 28, 2013 fell 3%, to $25.5 million, while net earnings dropped 43%, to $802,900. Sales were down in both EDC’s publishing division, where revenue fell 1.5%, to $10.8 million, and the Usborne Books and More group where sales declined 3.9%, to $14.7 million.
In its 10-K filing with the SEC, EDC attributed the decline in the publishing division to a 31.0% drop in sales to national chain stores, that offset an increase of 25.0% for smaller retail stores, and 13.6% for inside sales. In the Usborne group, revenue from home shows fell 14% which EDC said was primarily due to 11% fewer orders placed during the period and a 3% decrease in average order size. The number of consultants also fell. Sales to schools and libraries, which is now the division’s biggest channel, rose 2% primarily due to the per-order average increase of 2%.
At the beginning of fiscal 2013 in March 2012, EDC gained lots of media attention by announcing that it was not selling its books on Amazon in order to help sales in its other channels, particularly the home party division.