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Scholastic Reports Fiscal 2025 First Quarter Results

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Company Affirms Fiscal 2025 Guidance

NEW YORK, Sept. 26, 2024 /PRNewswire/ — Scholastic Corporation (NASDAQ: SCHL), the global children’s publishing, education and media company, today reported financial results for the Company’s fiscal first quarter ended August 31, 2024.

Peter Warwick, President and Chief Executive Officer, said, “During our first quarter, Scholastic prepared for another important back-to-school season, as we executed on our long-term growth initiatives. In the seasonally quiet quarter for our school-based channels, first quarter’s operating loss improved modestly versus the prior year.

“Scholastic advanced its strategy as a global children’s media and content company last quarter, with engaging and critically acclaimed publishing, a growing slate of exciting media properties in development and production, and early wins from our acquisition of 9 Story Media Group. Scholastic-published titles maintained their presence on bestseller lists during the quarter, including the latest book in Aaron Blabey’s Bad Guys® series, with exciting new titles in major global franchises planned for release in the fall and spring. In our integrated Scholastic Entertainment division, we took advantage of early opportunities to monetize and expand the reach of Scholastic IP, with the launch of new The Magic School Bus® and Clifford Classic® channels on advertising-supported distribution platforms. 

“With most children in the U.S. now back at school, our School Reading Events division remains as differentiated and relevant as ever, bringing the excitement of books, reading and stories to millions of kids and families, while generating approximately $200 million in cash and in-kind value last year to support schools and educators. In fiscal 2025 we remain focused on expanding the reach and impact of our Book Fairs and Clubs in this division, while innovating in how we serve our school partners. In our Education Solutions division, we continue to develop new structured literacy programs and supplemental products for schools, scheduled for launch next summer. We are confident these core businesses are well positioned for long-term growth.

“We remain focused on realizing Scholastic’s opportunity to create value and impact this year and beyond. We are affirming our fiscal 2025 guidance and are committed to our capital allocation priorities, including investing in our most compelling growth opportunities to meet the demand for children’s books, reading and media from a trusted brand, and returning capital to shareholders.”

Fiscal 2025 Q1 Review

In $ millions

First Quarter

Change

Fiscal 2025

Fiscal 2024

$

%

Revenues

$

237.2

$

228.5

$

8.7

4 %

Operating income (loss)

$

(88.5)

$

(99.1)

$

10.6

11 %

Earnings (loss) before taxes

$

(91.8)

$

(98.0)

$

6.2

6 %

Diluted earnings (loss) per share

$

(2.21)

$

(2.35)

$

0.14

6 %

Operating income (loss), ex. one-time items *

$

(85.6)

$

(92.8)

$

7.2

8 %

Diluted earnings (loss) per share, ex. one-time items *

$

(2.13)

$

(2.20)

$

0.07

3 %

Adjusted EBITDA *

$

(60.5)

$

(70.6)

$

10.1

14 %

* Please refer to the non-GAAP financial tables attached

 

Revenues increased 4% to $237.2 million, reflecting the contribution of 9 Story Media Group, recorded in the Entertainment segment, partly offset by lower supplemental curriculum and collections product sales in Education Solutions. 

Operating loss decreased 11% to $88.5 million in the quarter, including $2.9 million in one-time charges, compared to $99.1 million a year ago, which included $6.3 million of one-time charges. Excluding one-time charges, operating loss improved 8% from a year ago. The improved seasonal loss primarily reflected increased results in Children’s Book Publishing and Distribution. Adjusted EBITDA (a non-GAAP measure of operations explained in the accompanying tables) improved 14% to a loss of $60.5 million.

Quarterly Results

Children’s Book Publishing and Distribution

In the fiscal first quarter, the Children’s Book Publishing and Distribution segment’s revenues increased 3% to $105.4 million.

Book Fairs revenues were $28.8 million, up 5% from the prior year period. Fairs activity is minimal during the first quarter based on the seasonality of the business. We expect participation at our book fairs to remain strong this school year, with fair count on track to achieve our target of 90,000 fairs in fiscal 2025.Book Clubs revenues were $2.7 million, in line with the prior year period. Clubs activity is seasonally quiet during the summer months. After strategically transitioning Book Clubs to a smaller, more profitable core business in fiscal 2024, we implemented new strategies to reengage customers this back-to-school season.Consolidated Trade revenues were $73.9 million, up 2% from the prior year period, primarily driven by higher foreign rights revenues, partly offset by lower frontlist sales compared to the prior year period when the Company released the paperback edition of the fourth book in the Hunger Games® series, The Ballad of Songbirds and Snakes. Fiscal 2025 revenues are expected to benefit from new releases in the second half of the fiscal year, including the newest book in Dav Pilkey’s Dog Man® series and the fifth book in Suzanne Collins’ Hunger Games® series, Sunrise on the Reaping.

Segment operating loss was $36.6 million, compared to $41.0 million a year ago. The year-over-year improvement was primarily driven by higher foreign rights revenues on relatively consistent operating expenses.

Education Solutions

Education Solutions revenues decreased 16% to $55.7 million, due to lower sales of supplemental curriculum products, as school districts focus on adopting and implementing new core programs. This was partly offset by increased sales to state-sponsored partners, driven by the growing number of kids participating in these programs.

Segment operating loss was $17.0 million, compared to $18.7 million in the prior period, primarily reflecting higher state-sponsored program revenues, as increases in participation have a significant impact on profitability, and lower operating expenses in the quarter, which more than offset the impact of lower segment revenues.

Entertainment

The newly formed Entertainment segment includes the operations of Scholastic Entertainment Inc. (SEI), which were included in the Children’s Book Publishing and Distribution segment in prior year periods, combined with 9 Story Media Group.

Segment revenues were $16.6 million, primarily reflecting the addition of 9 Story Media Group revenues, which closed in June.

Segment operating loss was $0.5 million which included one-time charges of $1.7 million. Excluding one-time charges, adjusted segment operating income was $1.2 million reflecting the contribution from 9 Story Media Group.

International

Excluding unfavorable foreign currency exchange of $0.2 million, International revenues were in line with the prior year period. Revenues increased on the strong performance of backlist sales in the U.K., which were offset by revenue declines in Canada.

Segment operating loss was $8.3 million compared to $8.2 million in the prior year period, which included one-time charges of $1.2 million in the prior year period. Excluding one-time charges, adjusted operating loss increased $1.3 million.

Overhead

Overhead costs were $26.1 million compared to $30.7 million in the prior year period, which included one-time charges of $1.2 million and $5.1 million, respectively. Excluding one-time charges, adjusted overhead costs decreased $0.7 million driven by lower employee-related expenses.

Capital Position and Liquidity

In $ millions

First Quarter

Change

Fiscal 2025

Fiscal 2024

$

%

Net cash (used) provided by operating activities

$

(41.9)

$

(38.1)

$

(3.8)

(10) %

Additions to property, plant and equipment and prepublication expenditures

(24.4)

(19.7)

(4.7)

(24) %

Net borrowings (repayments) of film related obligations

(2.4)

—

(2.4)

NM

Free cash flow (use)*

$

(68.7)

$

(57.8)

$

(10.9)

(19) %

Net cash (debt)*

$

(152.1)

$

119.9

$

(272.0)

NM

* Please refer to the non-GAAP financial tables attached

 

Net cash used by operating activities was $41.9 million, in line with the prior year period. Free cash use (a non-GAAP measure of operations explained in the accompanying tables) was $68.7 million in fiscal 2025, compared to free cash use of $57.8 million in the prior period, reflecting higher capital expenditures and production spend.

Net debt was $152.1 million compared to a net cash position of $119.9 million in the prior year period, reflecting the Company’s borrowings under its existing revolving credit facility to fund the acquisition of 9 Story Media Group.

The Company distributed $5.7 million in dividends and repurchased 163,194 shares of its common stock for $5.0 million in the first quarter. The Company expects to continue purchasing shares, from time to time as conditions allow, on the open market or in negotiated private transactions for the foreseeable future.

Additional Information

To supplement our financial statements presented in accordance with GAAP, we include certain non-GAAP calculations and presentations including, as noted above, “Adjusted EBITDA” and “Free Cash Flow”. Please refer to the non-GAAP financial tables attached to this press release for supporting details on the impact of one-time items on operating income, net income and diluted EPS, and the use of non-GAAP financial measures included in this release. This information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.

Conference Call

The Company will hold a conference call to discuss its results at 4:30 p.m. ET today, September 26, 2024. Peter Warwick, Scholastic President and Chief Executive Officer, and Haji Glover, the Company’s Chief Financial Officer, Executive Vice President, will moderate the call.

A live webcast of the call can be accessed at https://edge.media-server.com/mmc/p/m98wgyws/. To access the conference call by phone, please go to https://register.vevent.com/register/BIba13029c72e1414fa441a92404a14a4d, which will provide dial-in details. To avoid delays, participants are encouraged to dial into the conference call five minutes ahead of the scheduled start time. Shortly following the call, an archived webcast and accompanying slides from the conference call will be posted at investor.scholastic.com.

About Scholastic

For more than 100 years, Scholastic Corporation (NASDAQ: SCHL) has been encouraging the personal and intellectual growth of all children, beginning with literacy. Having earned a reputation as a trusted partner to educators and families, Scholastic is the world’s largest publisher and distributor of children’s books, a leading provider of literacy curriculum, professional services, and classroom magazines, and a producer of educational and entertaining children’s media. The Company creates and distributes bestselling books and e-books, print and technology-based learning programs for pre-K to grade 12, and other products and services that support children’s learning and literacy, both in school and at home. With international operations and exports in more than 135 countries, Scholastic makes quality, affordable books available to all children around the world through school-based book clubs and book fairs, classroom libraries, school and public libraries, retail, and online. Learn more at www.scholastic.com.

Forward-Looking Statements

This news release contains certain forward-looking statements relating to future periods. Such forward-looking statements are subject to various risks and uncertainties, including the conditions of the children’s book and educational materials markets generally and acceptance of the Company’s products within those markets, and other risks and factors identified from time to time in the Company’s filings with the Securities and Exchange Commission. Actual results could differ materially from those currently anticipated.

SCHL: Financial

Table 1

Scholastic Corporation

Consolidated Statements of Operations

(Unaudited)

(In $ Millions, except shares and per share data)

Three months ended

08/31/24

08/31/23

Revenues (1)

$

237.2

$

228.5

Operating costs and expenses:

Cost of goods sold

128.3

130.0

Selling, general and administrative expenses (2)

182.1

184.2

Depreciation and amortization

15.3

13.4

Total operating costs and expenses

325.7

327.6

Operating income (loss)

(88.5)

(99.1)

Interest income (expense), net

(3.0)

1.4

Other components of net periodic benefit (cost)

(0.3)

(0.3)

Earnings (loss) before income taxes

(91.8)

(98.0)

Provision (benefit) for income taxes (3)

(29.3)

(23.8)

Net income (loss) (1)

(62.5)

(74.2)

Basic and diluted earnings (loss) per share of Class A and Common Stock (4)

Basic

$

(2.21)

$

(2.35)

Diluted

$

(2.21)

$

(2.35)

Basic weighted average shares outstanding

28,290

31,564

Diluted weighted average shares outstanding

28,908

32,604

(1)

The financial results of 9 Story Media Group from the date of acquisition on June 20, 2024 through August 31, 2024
are included in the Company’s consolidated results of operations as of August 31, 2024. The unaudited pro-forma
consolidated results of operations for the three months ended August 31, 2024 and August 31, 2023 as if the acquisition
had occurred on June 1, 2023, the beginning of fiscal 2024, includes revenues of $242.9 and $248.3, respectively, and
net loss of $64.3 and $78.9, respectively.

(2)

In the three months ended August 31, 2024 and August 31, 2023, the Company recognized pretax severance of $1.2
and $6.3, respectively, related to cost-savings initiatives. In the three months ended August 31, 2024, the Company
recognized pretax costs of $1.7 related to the acquisition of 9 Story Media Group.

(3)

In the three months ended August 31, 2024 and August 31, 2023, the Company recognized a benefit of $0.7 and
$1.6, respectively, for income taxes in respect to one-time pretax items.

(4)

Earnings (loss) per share are calculated on non-rounded net income (loss) and shares outstanding. Recalculating
earnings per share based on numbers rounded to millions may not yield the results as presented.

 

Table 2

Scholastic Corporation

Segment Results

(Unaudited)

(In $ Millions)

Three months ended

Change

08/31/24

08/31/23

$

%

Children’s Book Publishing and Distribution (1)

Revenues

Books Clubs

$

2.7

$

2.6

$

0.1

4 %

Book Fairs

28.8

27.3

1.5

5 %

School Reading Events

31.5

29.9

1.6

5 %

Consolidated Trade

73.9

72.5

1.4

2 %

Total Revenues

105.4

102.4

3.0

3 %

Operating income (loss)

(36.6)

(41.0)

4.4

11 %

Operating margin

NM

NM

Education Solutions

Revenues

55.7

66.0

(10.3)

(16) %

Operating income (loss)

(17.0)

(18.7)

1.7

9 %

Operating margin

NM

NM

Entertainment (1)

Revenues

16.6

0.4

16.2

NM

Operating income (loss)

(0.5)

(0.5)

0.0

NM

Operating margin

NM

NM

International

Revenues

56.8

57.2

(0.4)

(1) %

Operating income (loss)

(8.3)

(8.2)

(0.1)

(1) %

Operating margin

NM

NM

Overhead

Revenues

2.7

2.5

0.2

8 %

Operating income (loss)

(26.1)

(30.7)

4.6

15 %

Operating income (loss)

$

(88.5)

$

(99.1)

$

10.6

11 %

NM – Not meaningful

(1)

The newly formed Entertainment segment includes the operations of Scholastic Entertainment Inc.
(SEI), which were included in the Children’s Book Publishing and Distribution segment in prior periods,
and 9 Story Media Group. The financial results for SEI for the three months ended August 31, 2023
have been reclassified to Entertainment to reflect this change.

 

Table 3

Scholastic Corporation

Supplemental Information

(Unaudited)

(In $ Millions)

Selected Balance Sheet Items

08/31/24

08/31/23

Cash and cash equivalents

$

84.1

$

125.8

Accounts receivable, net

201.1

201.9

Inventories, net

310.3

353.2

Accounts payable

184.0

167.7

Deferred revenue

173.9

171.1

Accrued royalties

77.5

72.0

Film related obligations

34.1

—

Lines of credit and long-term debt

231.1

5.9

Net cash (debt) (1)

(152.1)

119.9

Total stockholders’ equity

957.3

1,054.6

Selected Cash Flow Items

Three months ended

08/31/24

08/31/23

Net cash provided by (used in) operating activities

$

(41.9)

$

(38.1)

Property, plant and equipment additions

(20.0)

(14.3)

Prepublication expenditures

(4.4)

(5.4)

Net borrowings (repayments) of film related obligations

(2.4)

—

Free cash flow (use) (2)

$

(68.7)

$

(57.8)

(1)

Net cash (debt) is defined by the Company as cash and cash equivalents less
production cash of $5.1 as of August 31, 2024, net of lines of credit, short-term
and long-term debt. Film related obligations are not included. The Company utilizes
this non-GAAP financial measure, and believes it is useful to investors, as an
indicator of the Company’s effective leverage and financing needs.

(2)

Free cash flow (use) is defined by the Company as net cash provided by or used
in operating activities (which includes royalty advances) and cash acquired through
acquisitions and from sale of assets, reduced by spending on property, plant and
equipment and prepublication costs and adjusted for net cash flows from film
related obligations. The Company believes that this non-GAAP financial measure is
useful to investors as an indicator of cash flow available for debt repayment and
other investing activities, such as acquisitions. The Company utilizes free cash flow
as a further indicator of operating performance and for planning investing activities.

 

Table 4

Scholastic Corporation

Supplemental Results

Excluding One-Time Items

(Unaudited)

(In $ Millions, except per share data)

Three months ended

08/31/2024

08/31/2023

Reported

One-time
items

Excluding
One-time
items

Reported

One-time
items

Excluding
One-time
items

Diluted earnings (loss) per share (1)

$

(2.21)

$

0.08

$

(2.13)

$

(2.35)

$

0.15

$

(2.20)

Net income (loss) (2)

$

(62.5)

$

2.2

$

(60.3)

$

(74.2)

$

4.7

$

(69.5)

Earnings (loss) before income taxes

$

(91.8)

$

2.9

$

(88.9)

$

(98.0)

$

6.3

$

(91.7)

Children’s Book Publishing and Distribution (3)

$

(36.6)

$

—

$

(36.6)

$

(41.0)

$

—

$

(41.0)

Education Solutions

(17.0)

—

(17.0)

(18.7)

—

(18.7)

Entertainment (3) (4)

(0.5)

1.7

1.2

(0.5)

—

(0.5)

International (5)

(8.3)

—

(8.3)

(8.2)

1.2

(7.0)

Overhead (6)

(26.1)

1.2

(24.9)

(30.7)

5.1

(25.6)

Operating income (loss)

$

(88.5)

$

2.9

$

(85.6)

$

(99.1)

$

6.3

$

(92.8)

(1)

Earnings (loss) per share are calculated on non-rounded net income (loss) and shares outstanding. Recalculating earnings 
per share based on rounded numbers may not yield the results as presented.

(2)

In the three months ended August 31, 2024 and August 31, 2023, the Company recognized a benefit of $0.7 and $1.6,
respectively, for income taxes in respect to one-time pretax items.

(3)

The newly formed Entertainment segment includes the operations of Scholastic Entertainment Inc. (SEI), which were included
in the Children’s Book Publishing and Distribution segment in prior periods, and 9 Story Media Group. The financial results for
SEI for the three months ended August 31, 2023 have been reclassified to Entertainment to reflect this change.

(4)

In the three months ended August 31, 2024, the Company recognized pretax costs of $1.7 related to the acquisition of 9 Story
Media Group.

(5)

In the three months ended August 31, 2023, the Company recognized pretax severance of $1.2 related to cost-savings initiatives.

(6)

In the three months ended August 31, 2024  and August 31, 2023, the Company recognized pretax severance of $1.2 and $5.1,
respectively, related to cost-savings initiatives.

 

Table 5

Scholastic Corporation

Consolidated Statements of Operations – Supplemental

Adjusted EBITDA

(Unaudited)

(In $ Millions)

Three months ended

08/31/24

08/31/23

Earnings (loss) before income taxes as reported

$

(91.8)

$

(98.0)

One-time items before income taxes

2.9

6.3

Earnings (loss) before income taxes excluding one-time items

(88.9)

(91.7)

Interest (income) expense (1)

3.4

(1.4)

Depreciation and amortization (2)

25.0

22.5

Adjusted EBITDA (3)

$

(60.5)

$

(70.6)

(1)

For the three months ended August 31, 2024, amount includes production loan interest of
$0.4 amortized into cost of goods sold.

(2)

For the three months ended August 31, 2024 and August 31, 2023, amounts include
prepublication and production cost amortization of $6.7 and $6.7, respectively, and
depreciation of $0.7 and $0.6, respectively, recognized in cost of goods sold, amortization
of deferred financing costs of $0.1 and $0.1 respectively, and amortization of capitalized
cloud software of $2.2 and $1.7, respectively, recognized in selling, general and
administrative expenses.

(3)

Adjusted EBITDA is defined by the Company as earnings (loss), excluding one-time
items, before interest, taxes, depreciation and amortization. The Company believes
that Adjusted EBITDA is a meaningful measure of operating profitability and useful for
measuring returns on capital investments over time as it is not distorted by unusual
gains, losses, or other items.

 

Table 6

Scholastic Corporation

Consolidated Statements of Operations – Supplemental

Adjusted EBITDA by Segment

(Unaudited)

(In $ Millions)

Three months ended

08/31/24

CBPD (1) (2)

EDUC (1)

ENT (1) (2)

INTL (1)

OVH (1)

Total

Earnings (loss) before income taxes as reported

$

(36.6)

$

(17.0)

$

(1.1)

$

(8.7)

$

(28.4)

$

(91.8)

One-time items before income taxes

—

—

1.7

—

1.2

2.9

Earnings (loss) before income taxes excluding one-time items

(36.6)

(17.0)

0.6

(8.7)

(27.2)

(88.9)

Interest (income) expense (3)

0.0

—

1.1

(0.0)

2.3

3.4

Depreciation and amortization (4)

7.5

6.2

3.5

1.9

5.9

25.0

Adjusted EBITDA (5)

$

(29.1)

$

(10.8)

$

5.2

$

(6.8)

$

(19.0)

$

(60.5)

Three months ended

08/31/23

CBPD (1) (2)

EDUC (1)

ENT (1) (2)

INTL (1)

OVH (1)

Total

Earnings (loss) before income taxes as reported

$

(41.1)

$

(18.7)

$

(0.5)

$

(8.5)

$

(29.2)

$

(98.0)

One-time items before income taxes

—

—

—

1.2

5.1

6.3

Earnings (loss) before income taxes excluding one-time items

(41.1)

(18.7)

(0.5)

(7.3)

(24.1)

(91.7)

Interest (income) expense

0.0

0.0

—

(0.1)

(1.3)

(1.4)

Depreciation and amortization (4)

7.7

7.8

0.1

1.9

5.0

22.5

Adjusted EBITDA (5)

$

(33.4)

$

(10.9)

$

(0.4)

$

(5.5)

$

(20.4)

$

(70.6)

(1)

The Company’s segments are defined as the following: CBPD – Children’s Book Publishing and Distribution segment; EDUC – Education
Solutions segment; ENT – Entertainment segment; INTL – International segment; OVH – unallocated overhead.

(2)

The newly formed Entertainment segment includes the operations of Scholastic Entertainment Inc. (SEI), which were included in the
Children’s Book Publishing and Distribution segment in prior periods, and 9 Story Media Group. The financial results for SEI for the
three months ended August 31, 2023 have been reclassified to Entertainment to reflect this change.

(3)

For the three months ended August 31, 2024, amount includes production loan interest of $0.4 amortized into cost of goods sold.

(4)

Depreciation and amortization in the Children’s Book Publishing and Distribution, Education Solutions and International segments
includes amounts allocated from overhead.

(5)

Adjusted EBITDA is defined by the Company as earnings (loss), excluding one-time items, before interest, taxes, depreciation
and amortization. The Company believes that Adjusted EBITDA is a meaningful measure of operating profitability and useful for
measuring returns on capital investments over time as it is not distorted by unusual gains, losses, or other items.

 

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SOURCE Scholastic Corporation

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Technology

Custom T-Shirt Printing Market to Grow by USD 2.01 Billion from 2024-2028, Driven by Customized T-Shirts as Branding Tools; AI Driving Market Transformation – Technavio

Published

55 mins ago

on

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By

NEW YORK, Sept. 27, 2024 /PRNewswire/ — Report with the AI impact on market trends – The Global Custom T-Shirt Printing Market size is estimated to grow by USD 2.01 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 7.44% during the forecast period. Growing use of customized T-Shirts as branding tool is driving market growth, with a trend towards M and A, partnerships, and expansion of business by opening new offices However, fragmented nature of market and huge initial investment poses a challenge – Key market players include Bewakoof Brands Pvt. Ltd., Blue Gecko Printing, Blue Gecko UK Ltd., Cimpress Plc, Claranova SE, CustomInk LLC, Designhill Inc., Entripy, Ilogo, International Coatings Co. Inc., Print Safari, Printfly Corp., Printful Inc., Printo Document Services Pvt. Ltd., PT Reycom Printing Solusi, Spreadshirt Inc., THREADBIRD, TShirt Elephant, UberPrints Inc., and yourPrint.

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Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

Type (Graphic designed shirt and Artwork), Technique (Screen printing, Digital printing, and Plot printing), and Geography (APAC, Europe, North America, South America, and Middle East and Africa)

Region Covered

APAC, Europe, North America, South America, and Middle East and Africa

Key companies profiled

Bewakoof Brands Pvt. Ltd., Blue Gecko Printing, Blue Gecko UK Ltd., Cimpress Plc, Claranova SE, CustomInk LLC, Designhill Inc., Entripy, Ilogo, International Coatings Co. Inc., Print Safari, Printfly Corp., Printful Inc., Printo Document Services Pvt. Ltd., PT Reycom Printing Solusi, Spreadshirt Inc., THREADBIRD, TShirt Elephant, UberPrints Inc., and yourPrint

 

Key Market Trends Fueling Growth

Vendors in the custom T-shirt printing market are implementing strategic moves to enhance their competitive positions. In November 2021, CustomInk LLC expanded its offerings by acquiring Swag.com, a corporate swag platform, to enter the gifting-as-a-service category. Simultaneously, Printful Inc. Formed a partnership with Vexels, a leading design platform, to integrate over 500 pre-selected designs into their Design Maker tool. This collaboration aims to provide Printful’s global customers with more high-quality design options. Additionally, Printful invested over USD5 million in the UK and Poland to expand its clothing segment in Europe. These strategic initiatives demonstrate the market’s dynamic nature and vendors’ commitment to growth and innovation. 

The custom T-shirt printing market is thriving, with trends leaning towards unique logos and designs for clubs, travel industry, and outdoor sports. Unique preferences among young people for clothing that expresses personality are driving demand. Printing techniques like screen printing and digital printing offer various advantages, with screen printing providing a more traditional look and digital printing offering vibrant colors and intricate designs. The apparel market continues to grow, making custom-designed T-shirts a popular branding tool for businesses in various industries, including sports, entertainment, and even households. Affordability and accessibility through e-commerce platforms expand potential customers. Procolored printing technology and artificial intelligence enhance design insights, while customized clothing with logos, slogans, and artwork boosts brand visibility. Customized T-shirts serve as a powerful advertising tool for fan bases and social awareness campaigns. 

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Market Challenges

The global custom T-shirt printing market is characterized by a high degree of fragmentation, with numerous vendors competing intensely based on pricing. This market fragmentation has resulted in price wars, causing revenue and profit challenges for market participants. Small and medium-sized vendors face additional hurdles, such as maintaining color consistency, managing quality, and marketing effectively. The screen printing technique, a common method for custom T-shirt production, involves expensive set-ups that are less cost-effective for small production runs. These factors, combined with the market’s fragmented nature and significant initial investments, pose moderate challenges to the growth of the custom T-shirt printing market during the forecast period.The custom T-shirt printing market faces several challenges in various industries. In clubs and organizations, unique logos and designs are essential for branding and member identification. The travel industry caters to young people with diverse clothing preferences, requiring affordable, custom-designed T-shirts. Outdoor sports and the sports industry demand high-quality printing techniques like Screen and Digital printing for durability and vibrant colors. Unique designs and artwork are crucial for apparel market success, with graphic design and printing technology playing significant roles. Procolored and Prospective customers in the entertainment industry seek personalized T-shirts as branding tools and advertising for their fan bases. Customized clothing, including logos and slogans, is a valuable branding strategy for businesses in various sectors. Printing techniques like Screen and Digital printing, Artificial intelligence, and E-commerce platforms offer customization opportunities. Custom-designed T-shirts cater to the needs of households and individuals, reflecting their personality and social awareness. The potential customers in the apparel market seek affordability and quality, making it essential for businesses to offer a range of normal T-shirts and customized clothing options. In conclusion, the custom T-shirt printing market faces challenges in various industries, including clubs, travel, sports, apparel, and entertainment. To succeed, businesses must focus on unique designs, affordable pricing, and high-quality printing techniques while catering to the diverse preferences and branding needs of their customers.

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Segment Overview

This custom t-shirt printing market report extensively covers market segmentation by

Type 1.1 Graphic designed shirt1.2 ArtworkTechnique 2.1 Screen printing2.2 Digital printing2.3 Plot printingGeography 3.1 APAC3.2 Europe3.3 North America3.4 South America3.5 Middle East and Africa

1.1 Graphic designed shirt- The custom T-shirt printing market is primarily driven by the popularity of graphic-designed shirts. In 2023, graphic designs accounted for the largest market share, and this trend is anticipated to continue. Graphic-designed shirts are cost-effective due to their low production costs. Manufacturers create these shirts based on current fashion trends, increasing their appeal to consumers. Pre-printed graphic designs cater to customers seeking quick and affordable solutions, further fueling market growth. Consequently, the global custom T-shirt printing market is expected to thrive during the forecast period, with graphic-designed shirts leading the charge.

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Research Analysis

Custom-designed t-shirts have become a popular choice for individuals and businesses looking to make a statement or boost brand visibility. With the rise of printing technology, creating customized clothing has never been easier or more affordable. Prospective customers seek out custom-made t-shirts as a unique expression of their personality and preferences. The printing technique used can significantly impact the final product, with Procolored and artificial intelligence technology offering advanced customization options. Brands recognize the value of custom t-shirts as an effective branding tool, enabling them to reach consumers in a memorable and engaging way. Normal t-shirts can be transformed into eye-catching branding vehicles, enhancing consumer decision-making and loyalty. Customized t-shirts continue to be a powerful marketing tool, offering endless possibilities for creativity and self-expression.

Market Research Overview

Custom-designed t-shirts have become a popular trend in branding and marketing strategies, offering businesses and individuals a unique way to increase brand visibility among prospective customers. Customized t-shirts serve as effective branding tools, allowing the use of logos and slogans to promote businesses, causes, or personalities. The entertainment industry, with its vast fan base, has embraced customized clothing as a powerful advertising tool. The printing technique used, whether screen printing or digital printing, plays a crucial role in the final product’s quality. Customized clothing is not only for businesses; it is also a preferred choice for sports teams, clubs, and young people seeking unique designs that reflect their personality. Affordability and the wide range of printing techniques, including Procolored and artificial intelligence, make custom t-shirts an attractive option for households. The apparel market continues to evolve, with trends in outdoor sports, the sports industry, and e-commerce driving demand for customized clothing. Graphic design and artwork play a significant role in creating unique and eye-catching designs. Printing technology advancements, such as digital printing and screen printing, offer new possibilities for customization and personalization.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeGraphic Designed ShirtArtworkTechniqueScreen PrintingDigital PrintingPlot PrintingGeographyAPACEuropeNorth AmericaSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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Technology

Ammunition Market to Grow by USD 3.9 Billion from 2024-2028, Driven by Geopolitical Conflicts and Tensions; AI Impact on Market Trends – Technavio

Published

55 mins ago

on

September 27, 2024

By

NEW YORK, Sept. 27, 2024 /PRNewswire/ — The Global Ammunition Market size is estimated to grow by USD 3.9 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  3.21%  during the forecast period. Prevalence of geopolitical conflicts, political tensions, and cross-border issues is driving market growth, with a trend towards growing asymmetric warfare worldwide. However, proliferation of illicit ammunition manufacturers  poses a challenge – Key market players include Adani Group, AMMO Inc., BAE Systems Plc, BERETTA HOLDING SA, CBC Ammunition, Denel SOC Ltd., Elbit Systems Ltd., Fabbrica dArmi Pietro Beretta S.p.A., General Dynamics Corp., Ordnance LLC, Hanwha Corp., Herstal SA, Industrias Tecnos S.A. De C.V., KNDS N.V., Lockheed Martin Corp., Mesko SA, Nammo AS, Northrop Grumman Corp., Olin Corp., Polska Grupa Zbrojeniowa SA, Poongsan Corp., Rheinmetall AG, Singapore Technologies Engineering Ltd., Thales Group, and Vista Outdoor Inc..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View the snapshot of this report

Ammunition Market Scope

Report Coverage

Details

Base year

2023

Historic period

2018 – 2022

Forecast period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 3.21%

Market growth 2024-2028

USD 3.9 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

3.07

Regional analysis

North America, APAC, Europe, Middle East and Africa, and South America

Performing market contribution

APAC at 33%

Key countries

US, China, Russia, India, and UK

Key companies profiled

Adani Group, AMMO Inc., BAE Systems Plc, BERETTA HOLDING SA, CBC Global Ammunition, Denel SOC Ltd., Elbit Systems Ltd., Fabbrica dArmi Pietro Beretta S.p.A., General Dynamics Corp., Global Ordnance LLC, Hanwha Corp., Herstal SA, Industrias Tecnos S.A. De C.V., KNDS N.V., Lockheed Martin Corp., Mesko SA, Nammo AS, Northrop Grumman Corp., Olin Corp., Polska Grupa Zbrojeniowa SA, Poongsan Corp., Rheinmetall AG, Singapore Technologies Engineering Ltd., Thales Group, and Vista Outdoor Inc.

Market Driver

Asymmetric warfare, characterized by significant differences in military capabilities and strategies between opposing forces, has become prevalent in various global conflicts. Guerrilla warfare, a form of asymmetric warfare, is employed by militant groups who do not occupy large bases and instead use surprise attacks, ambushes, and terrorist tactics. Night combat is a common strategy in such conflicts, leading to an increased demand for advanced imaging systems and ammunition. The US military has utilized passive night vision devices and thermal imagers in weapons such as RPG-7 rocket launchers, M-72 66mm Light Anti-Tank Weapons, M-79 40mm grenade launchers, and M-67 90mm recoilless rifles. The Middle East’s economic and political instability over the last quarter-century has resulted in numerous instances of asymmetric warfare, increasing the demand for ammunition. Consequently, the global ammunition market is anticipated to grow during the forecast period. 

The Ammunition Market is experiencing significant growth due to the demand for newer generation ammunition by armed forces and militaries worldwide. Penetrating power and accuracy are key factors driving this trend. Training ammunition is also in high demand for peacekeeping missions and military personnel training. Companies like Rheinmetall and General Dynamics lead the market with innovative solutions, such as polymer-cased ammunition and advanced calibers. Militaries are modernizing their infantry weapons, leading to increased competition among munitions manufacturers. Military spending and geopolitical tensions continue to fuel demand for combat equipment, arms, and ammunition. Law enforcement agencies and reserve forces also contribute to the market’s gross volume. Expressions of Interest for artillery guns and the development of new calibers, like the Advanced 9mm Cartridge, further boost the industry. The area of impact and munition range are crucial considerations for military personnel, leading to the stockpiling of war reserves and inventory management. Terrorism and warfare equipment also contribute to the market’s growth. 

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Market Challenges

The global ammunition market faces significant challenges due to the illicit production and trade of ammunition. According to the United Nations Office of Disarmament Affairs (UNODA), over 80% of ammunition trade remains outside of reliable export data. The causes of weapons diversion are classified into six major categories by Conflict Armament Research (CAR): battlefield capture, loss from state custody, state-sponsored diversion, poorly managed national stockpiles, state collapse, and unknown causes. However, expert groups monitoring UN arms embargoes attribute the deviation of ammunition to the lack of basic accountability systems. The proliferation of illicit ammunition manufacturers poses a major threat to global security, as these manufacturers produce and transfer unmarked ammunition across international borders. This illegally manufactured ammunition is often used in terrorist activities and negatively impacts the demand for branded ammunition. Therefore, the rise of illicit ammunition manufacturers is expected to negatively impact the growth of the global ammunition market during the forecast period.The Ammunition Market faces numerous challenges in various sectors. In the military and law enforcement arenas, terrorism and warfare equipment requirements drive demand for ammunition and combat equipment. Defense budgets prioritize inventory for armed personnel, necessitating stockpiling of war reserves, artillery, and small-caliber ammunition. In civilian sectors, demand comes from sporting, hunting, self-defense, and territorial conflicts. Political instabilities, economic inequalities, and ceasefire violations fuel the need for military ordnance. The ammunition industry confronts regulatory hurdles, including restrictive legislation and compliance issues. The Gun Control bill and the Arms Trade Treaty, as multilateral treaties, impact international measures. Military modernization calls for infantry support programs and weaponry upgrades, often in specific calibers. Cross-border terrorism and drug trafficking activities further complicate the landscape. The ammunition market must adapt to these challenges while addressing civilian disarmament initiatives and firearms-related products.

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Segment Overview 

This ammunition market report extensively covers market segmentation by

Product 1.1 Small caliber1.2 Medium caliber1.3 Large caliberApplication 2.1 Defense2.2 Civil and commercialGeography 3.1 North America3.2 APAC3.3 Europe3.4 Middle East and Africa3.5 South America

1.1 Small caliber-  The ammunition market is a significant sector in the global defense industry. Companies manufacture and supply various types of ammunition, including small arms, artillery, and missile ammunition, to military forces and law enforcement agencies. Demand for ammunition is driven by military training and combat operations. Key players in the market include Rheinmetall, Nammo, and BAE Systems. Competition is fierce, and companies focus on innovation, quality, and cost-effectiveness to gain an edge. The market size is expected to grow due to ongoing military modernization programs and increasing defense budgets.

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Research Analysis

The Ammunition Market encompasses the production and sale of warfare equipment, including ammunition, combat equipment, and arms, for military and law enforcement agencies. Defense budgets play a significant role in driving demand for ammunition, as armed personnel rely on a constant supply of cartridges to maintain readiness. The industry continues to innovate, with newer generation ammunition offering increased penetrating power and improved performance for armed forces and militaries. Rifles come in various calibers, with the Advanced 9mm Cartridge gaining popularity due to its versatility and effectiveness. The ammunition industry caters to the unique needs of military and law enforcement agencies, ensuring they have access to reliable and effective equipment for training and combat situations.

Market Research Overview

The Ammunition Market encompasses a wide range of products used in warfare equipment and combat situations. These include bullets, artillery shells, and other firearms-related products. Factors driving the market include terrorism, wars, cross-border terrorism, political instabilities, territorial conflicts, and economic inequalities. Military modernization, military spending, and geopolitical tensions are also significant factors. The market caters to armed personnel in military and law enforcement agencies, as well as civilian sectors for sporting, hunting, self-defense, and infantry support programs. The industry faces regulatory hurdles, compliance issues, and restrictive legislation such as the Arms Trade Treaty and Gun Control bill. Newer generation ammunition with increased penetrating power is in high demand, along with training ammunition for peacekeeping missions and rifles in various calibers. Companies produce artillery guns, munitions, and polymer-cased ammunition to meet the demands of militaries and military personnel, with competition among active military personnel, reserve forces, and civilian sectors driving expression of interest in advanced 9mm cartridges and other military ordnance.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ProductSmall CaliberMedium CaliberLarge CaliberApplicationDefenseCivil And CommercialGeographyNorth AmericaAPACEuropeMiddle East And AfricaSouth America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/ammunition-market-to-grow-by-usd-3-9-billion-from-2024-2028–driven-by-geopolitical-conflicts-and-tensions-ai-impact-on-market-trends—technavio-302260150.html

SOURCE Technavio

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Technology

PUDO Inc. reports FY 2025 second quarter end results

Published

55 mins ago

on

September 27, 2024

By

TORONTO, Sept. 27, 2024 /CNW/ – PUDO Inc. (“PUDO” or the “Company”) (CSE:  PDO) (OTCQB: PDPTF), today filed interim financial results (unaudited) and operational highlights for its second quarter that ended August 31, 2024 (“Q2 FY 2025”).

Year over Year

Q1-Q2 FY 2025

Q1-Q2 FY 2024

% Change

Revenue from Operations

$1,737,073

$1,593,295

9.0 %

Gross Profit

$522,967

$666,242

-21.5 %

Comprehensive loss for the period

($257,238)

($332,606)

      – 22.7%*

* Net Loss position declined by net 22.7%

“It is encouraging to note that revenue growth continues to be driven by our returns business” commented Elliott Etheredge, CEO.  “The Canadian business in particular has benefited from our recent partnerships.  Strong interest in PUDO’s Canadian nationwide network continues to bring strategic opportunities to PUDO.”

In Q2 FY 2025, returns accounted for 52.6% of revenue vs. 43.7% in Q2 FY 2024. 

PUDO continues to expand the availability and volume of its PUDO Label Return services.  By increasing the number of retailers using the solution and partnering with additional SAAS and 3PL providers, the PUDO network is becoming an important part of the e-commerce returns solution. 

The Company is currently working with its partners to develop the U.S. network expansion this year. 

A complete copy of the interim consolidated financial statements and the Management’s Discussion and Analysis Report for the three and six month periods ended August 31, 2024, can be found on the CSE website at https://thecse.com/listings/pudo-inc/ and on SEDAR at www.sedar+.com.

About PUDO Inc.
PUDO Inc. is North America’s only independent parcel pick-up and drop-off counter network. 

PUDO has created a Network of more than 1,200 storefront partners known as PUDOpoint Counters, strategically located very near to where people live, work and play.

PUDO partners with retailers and logistics providers to offer a last-mile pick-up and returns network for ecommerce shoppers that reduces cost, increases convenience and provides package security to the last-mile of package logistics.  Visit: www.pudopoint.com.

To signup for the PUDO News Feed please subscribe at https://pudopoint.com/investors/ .

Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, such as statements regarding estimated revenues from new contracts, increased parcel volume, activation and implementation of PUDO’s technology and possible future expansions of PUDO’s operations. This information is based on current expectations and assumptions of management, including assumptions concerning PUDO’s ability to integrate its new customers into its network and successfully execute on its new and existing contracts. The use of any of the words “anticipate”, “believe”, “expect”, “plan”, “intend”, “can”, “will”, “should”, and similar expressions are intended to identify forward-looking statements. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Risks, uncertainties, and other factors involved with forward-looking information could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Factors that could cause actual results to differ materially from such forward-looking information include, without limitation, uncertainties with respect to service implementation, the economic results of the relationship on the operations of the Company, changes in general economic, market, or business conditions, and those risks set out in the Company’s public documents filed on SEDAR. This press release, in particular the information in respect of estimated revenues, may contain future-oriented financial information or financial outlook within the meaning of applicable securities laws. Such future-oriented financial information or financial outlook has been prepared for the purpose of providing information about management’s reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by law.

SOURCE Pudo Inc.

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