Revenue during the quarter dropped 8.14 percent to $336.20 million from $366 million in the previous year period. Gross margin for the quarter expanded 95 basis points over the previous year period to 52.32 percent. Operating margin for the quarter stood at negative 7.02 percent as compared to a negative 4.48 percent for the previous year period.

Operating loss for the quarter was $23.60 million, compared with an operating loss of $16.40 million in the previous year period.

"In the third quarter, we controlled costs effectively, protecting profits despite reduced sales in clubs, while trade sales returned to more normal levels after an exceptional first half driven by new Harry Potter publishing. Our program to better match our fair resources to each school's size and interests resulted in a significant improvement in the seasonal operating loss in fairs. Results in Education were on track for the year and we are sharply focused on the fourth quarter sales of comprehensive core curriculum literacy solutions, which are proving to be preferred over traditional textbooks by many teachers and districts," commented Richard Robinson, Chairman, President and Chief Executive Officer.

For financial year 2017, Scholastic Corp expects revenue to be in the range of $1,700 million to $1,800 million for financial year 2017. The company projects diluted earnings per share to be in the range of $1.60 to $1.70.