At Kmart, Martha Stewart sales down, royalties up
February 22, 2006-- Home Textiles Today,
New York – Driven by contractual minimum royalty guarantees, Kmart paid Martha Stewart Living Omnimedia (MSLO) $28.0 million in the fourth quarter of 2005, up from $23.7 in the same period a year ago. Sales of Martha Stewart Everyday products, however, “declined modestly in the quarter, with weakness in soft home partially offset by sales related to our recently introduced furniture line – Everyday Rooms,” the company said in its earnings release.
For the full year, MSLO merchandising royalty revenue reached $55.8 million, up 4.6%. Operating income from the division was $40.1 million, up 8.1%. This licensing venture was the only profitable unit of the four MSLO divisions in 2005; the other segments are publishing, broadcasting and internet/direct commerce.
Susan Lyne, president and ceo, noted that in contrast to the full year, the fourth quarter results “show meaningful improvement in all areas of our business.”
Related Content By Author
Industry Related Content
Countdown to Intertextile Shanghai