Revenue during the quarter grew 3.54 percent to $623.10 million from $601.80 million in the previous year period. Gross margin for the quarter contracted 82 basis points over the previous year period to 56.46 percent. Total expenses were 82.12 percent of quarterly revenues, down from 82.54 percent for the same period last year. This has led to an improvement of 41 basis points in operating margin to 17.88 percent.

Operating income for the quarter was $111.40 million, compared with $105.10 million in the previous year period.

"Our trade publishing had exceptionally good performance in the second quarter, with a number of best-selling frontlist titles and a great deal of excitement for our new Harry Potter releases, including the original screenplay book for Fantastic Beasts and Where to Find Them and Harry Potter and the Chamber of Secrets: The Illustrated Edition, as well as stronger children's book results in our international major markets," commented Richard Robinson, chairman, president and chief executive officer. "In the U.S., our plan for level revenue and higher profits in book fairs is on track for the full-year. In book clubs, where we reduced catalog mailings in the quarter, revenues were lower than expected, although we were successful in trimming costs to protect profitability. We are now expanding mailings of higher performing catalogs and anticipate improved club revenue in the second half of the fiscal year. We are also well-positioned for continued share gains in our education business, as we meet the growing demand for children's literature as a core instructional resource, coupled with professional services and research-based instructional strategies that resonate in today's schools."

For fiscal year 2017, Scholastic Corp forecasts revenue to be in the range of $1,700 million to $1,800 million. It expects diluted earnings per share to be in the range of $1.60 to $1.70 for the same period.