Net earnings for the second quarter ended August 31, 2020, soared at Educational Development Corp., jumping to $4.2 million, from $1 million, in the second quarter ended last August. Revenue rose 142.5%, to $59.2 million.
The performance of EDC’s direct sales division drove the gains, with revenue rising almost 162%, to $56.9 million, helped in part by the addition of more than 10,000 new home-based sales reps. EDC finished August with 50,300 active sales consultants. EDC chairman and CEO Randall White said that in addition to the jump in sales reps, the revenue gain was due to “continued demand for educational materials in the home, and our ability to receive orders online and deliver directly to our customers’ homes.”
After a slow start following the outbreak of the Covid-19 pandemic, EDC has experienced strong gains since April, and sales in the first half of fiscal 2021 were up 87.5% over the comparable in fiscal 2020, hitting $97.5 million. Earnings jumped to $6.2 million, from $2.4 million, in the first half of fiscal 2020.
It was not all good news at EDC. Its publishing division had a 13.5% decline in revenue, to $2,3 million. White attributed the decline to temporary store closures. He said that, while stores have started to reopen, he expects sales in the division to be soft for the next few months, but to return to historical levels once the pandemic is over.
Problems with the publishing group aside, White said he was looking forward to the fall, which is typically the company’s busiest period. “As I have continued to say for years, Educational Development Corporation is a great company to work for and a great company to own,” White said.