Kmart wind-down hits MSLO results
April 30, 2009,
New York -- As the Martha Stewart Everyday program phases out at Kmart, Martha Stewart Living Omnimedia’s merchandising division took a $5 million haircut in the first quarter.
Robin Marino, president and ceo of merchandising, described 2009 as “the end of an era,” but said the MSLO merchandise team is working on products for a new mass market retail alliance next year.
She declined to provide specifics or to confirm a deal had already been reached, but said: “We expect to be ready for a seamless transition into 2010.”
Kmart must liquidate its exclusive Martha Stewart Everyday inventory by the end of January 2010.
Absent the Kmart business, the merchandising sector grew 18% during the quarter, boosted in part by the exclusive Martha Stewart Collection at Macy’s.
“It has become Macy’s largest volume brand in its home business,” said Marino. “We’ll expand our presence there accordingly.”
Best sellers in the first quarter were gadgets, cookware and bake ware, the company said in its quarterly financial statement.
Total corporate revenues fell 26% to $50.4 million. MSLO reported a net loss of $16.8 million, or 31 cents per share, vs. a net loss of $4.2 million, or 8 cents per share, in the year-ago period.
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