Martha Stewart Sales Soar

With Namesake Leader Back at the Helm, Retailer Reports Substantial Gains

Don Hogsett, July 31, 2006

New York —With the doyenne of home couture back on the job full time, Martha Stewart Living Omnimedia reported substantial improvement in virtually all of its operations during the second quarter, driving sales up a heady 47%, and nearing the break-even point as it slashed its losses by 95%, to just $1.8 million from $34.2 million last year.

Picking up speed with Martha back in the saddle, sales advanced in each of her media operations, climbing by 46.8% to $67.4 million from $46.0 million during the same period last year.

Driving much of the gain was a big advertising pickup in publishing, where sales shot up by 29.0% to $40.9 million from $31.7 million a year ago. The internet business was another winner, more than doubling sales, to $4.6 million from $2.2 million.

But merchandising sales were flat, at $10.2 million, with KB Home helping to offset “modestly lower sales” of Martha Stewart Everyday products at Kmart.

When it comes to making money, all the company's business but one, merchandising, made gains during the quarter, turning a profit and recovering from year-ago losses. Merchandising reported a drop in operating profits of 13.9%, to $5.1 million from $5.9 million last year. But every other business swung to a profit, most notably publishing, with a $6.0 million operating profit reversing a prior-year loss of $3.3 million.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Current issue for September 2017

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!