Macy’s, Home Depot to make up for Martha’s lost Kmart biz

New York – Now that the Martha Stewart Everyday Program at Kmart has concluded, Martha Stewart Living Omnimedia expects upcoming expansions at Macy’s and Home Depot will eventually make up for the $1 billion business it once enjoyed with the discounter.

MSLO received its final royalty and minimum in January, an amount characterized as less than $2 million during the company’s earnings call earlier this week. During the fourth quarter, MSLO realized $10 million in previously deferred Kmart royalties as non-cash revenue as well as a $3 million cash payment, the company reported.

The Macy’s and Home Depot royalties and minimums will replace the Kmart money in less than three years, with business at the department stores and home center ramping up this year and hitting stride in 2011, executives said. Additional merchandising business with a variety of retailers and suppliers is considered add-on business, according to Charles Koppelman, executive chairman and principal executive officer.

“It is a new decade for the merchandising group,” said Robin Marino, president and ceo of MSLO’s merchandising division.

Macy’s this year will introduce a new opening price point program in Martha Stewart Collection called Essentials. In addition, the retailer next month will roll out Stewart-branded mattress in 410 doors.

Although MSLO does not break out actual sales figures for Macy’s – contrary to its practice for many years with Kmart – Marino described fourth quarter sales there as “particularly strong.” The company said the program recorded year-over-year sales gains at the department store in 2009.

Home Depot last month launched a Martha Stewart Living line of outdoor furniture as well as Martha Stewart Clean all-natural cleaning solutions. Paint will debut paint next month. Over the year the brand will expand into “many, many categories,” she said.

“We want to be everywhere at Home Depot,” she added.

Also in the pipeline is the rollout at Martha Stewart Pets at PetSmart, a program of 250 skus. A debut last week on QVC in the United Kingdom has the company “very excited about the possibilities that home shopping represents for our brand,” said Marino.

The company also plans to expand in grocery and the wedding sector in the U.S. and is looking at international opportunities, according to executives.

Operating income from the merchandising division more than doubled during the quarter ended Dec. 31 to $24.6 million from $9.3 million in the year-ago quarter. Revenues rose 8.4% to $25.7 million.

For the year, operating income in the merchandising division fell 7.2% to $25.7 million. Merchandising revenues declined 10.1% to $52.6 million.



Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

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.


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!