Martha Stewart Revenues Zoom
By Staff -- Home Textiles Today, 5/1/2006
New York — Buoyed by surging magazine ad revenue, Martha Stewart Living Omnimedia reported a sharply narrowed first-quarter loss of $6.8 million, recovering from a prior-year deficit of $19.2 million. Sales at the diversified media and licensing company soared higher by 59.9%, to $61.8 million from $38.7 million last year. Driving the top-line recovery was a 43% rise in publishing revenues, to $36.3 million from $25.4 million last year.
Merchandising jumped up by 20.1%, to $11.3 million from $9.4 million, driven by a new relationship with KB Home, now building Martha-branded communities. Likely to boost future results are licensing deals for a Martha Stewart Collection at Macy's, rugs by Safavieh, and a new line of Martha Stewart Crafts products.
| Qtr. 3/31 (x000) | 2006 | 2005 | % change |
| Sales | $61,832 | $38,666 | 59.9 |
| Oper. income (EBIT) | (7,691) | (19,782) | — |
| Net income | (6,835)a | (19,168)a | — |
| Per share (diluted) | (0.13) | (0.68) | — |
| Average gross margin | 48.1% | 38.2% | — |
| SG&A expenses | 57.0% | 85.0% | — |
| (loss) a. First quarter results include $1.0 million in interest income, compared with $769,000 last year; and a $123,000 loss from discontinued operations, compared with a prior-year loss of $132,000. |
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