Martha Stewart Marks Profitable Year

By Staff -- Home Textiles Today, 2/25/2008 12:00:00 AM

New York —

A strong fourth quarter helped Martha Stewart Living Omnimedia cross into black ink for its full year results, posting 2007 net income of $10.3 million compared to a net loss of $17.0 million in the prior year.

Revenues for MSLO were up 13.7% to $327.9 million for the year ended Dec. 31, 2007.

The fourth quarter included initial royalties — the company did not specify the amount — from the Martha Stewart Collection at Macy's. Overall merchandising revenues for the quarter were $49.8 million, up 41.5% over $35.2 million in the prior-year period.

The company expects to make more profit on lower revenues in the current year. MSLO cfo Howard Hochhauser said 2008 guidance is for revenues of about $300 million and adjusted EBITDA from $23 million to $28 million.

Chief among concerns in the merchandising division of the multiplatform lifestyle company is how to close the gap that is opening as guaranteed minimum royalty payments by Kmart for the Martha Stewart Everyday program decline within the guidelines of that licensing agreement. The program is in its final two years under the contract, which expires in January 2010.

Martha Stewart Living Omnimedia, Inc.