Dark Horse Media Acquired by the Embracer Group (publishersweekly.com)

Sales were flat at $433.6 million compared to the same period last year. Sales and adjusted sales for the third quarter of 2023 include $6.3 million of sales related to gift card redemptions in connection with recall remedies. Our 2023 results have been materially adversely impacted by the stop sale of the soft coolers included in the recalls initiated during the first quarter of 2023. Gross profit increased 13% to $251.3 million, or 58.0% of sales, compared to $222.4 million, or 51.3% of sales, in the third quarter of 2022. Gross profit included a $0.8 million, or 20 basis points, favorable impact related to lower than anticipated recall-related costs. The increase in gross margin was primarily due to lower inbound freight costs and lower product costs. Operating income decreased 10% to $61.9 million, or 14.3% of sales, compared to $68.5 million, or 15.8% of sales during the prior year quarter. Net income decreased 6% to $42.7 million, or 9.8% of sales, compared to $45.5 million, or 10.5% of sales in the prior year quarter; Net income per diluted share decreased 6% to $0.49, compared to $0.52 in the prior year quarter.

Second quarter net revenue of $7.5 billion was up 10% from the prior year and up 6% when adjusted for currency. Second quarter GAAP diluted net earnings per share (“EPS”) from continuing operations was $0.54, up from GAAP diluted net EPS from continuing operations of ($0.29) in the prior-year period. Click Read More below for additional information.

A May, 2023 report from Student Monitor, a second independent research group, also found a dramatic decade-long decline of 41% in student spending on course materials, with an average spend of $333 per student for the 2022-2023 academic year. Inclusive Access is a course material model developed by colleges across the country to deliver learning resources to students at the lowest market rate, on or before the first day of class. In 2015, the U.S. Department of Education issued federal guidance for institutions of higher learning to charge for course materials as part of tuition and fees, reducing the level of effort it takes for students to utilize their financial aid dollars for timely use on their course materials. According to Student Watch, the number of students enrolled in Inclusive Access has increased to 44% of the student population, up from 39% last year.