Another strong performance by its direct sales division boosted third quarter sales and earnings at Educational Development Corp. Total revenue in the quarter ended November 30, 2020, rose 63.5% over the comparable quarter in 2019, to $66.7 million. Net income jumped 59.2%, to $4.3 million.
Revenue at direct sales in the quarter soared 68.4% in the period, to $64.2 million, making it almost entirely responsible for the increase. Company chairman and CEO Randall White explained that, while growth earlier in 2020 was due to parents buying educational materials to help teach their children at home, gains in the most recent period were led by the big increase in the number of sales consultants.
EDC had 50,300 reps at the beginning of the quarter, and finished with 60,500, White reported. “Our growth in active [sales] consultants continued to drive our growth in sales during the quarter and we expect this increase in sales consultants will continue to grow revenues in our fiscal fourth quarter and into fiscal 2022,” White said in a statement.
Sales in EDC’s retail division decreased 5.3% in the quarter, to $2.6 million. EDC attributed the decline to the temporary closure of several of its accounts because of the pandemic.
For the first nine months of fiscal 2021, which ends February 28, revenue rose 76% over the comparable period in fiscal 2020, to $164.3 million. Earnings jumped to $10.4 million, from $5.1 million a year ago.