Martha Stewart Living Omnimedia reports third quarter results
-- Home Accents Today, 11/5/2009 7:54:00 AM
Martha Stewart Living Omnimedia, Inc. reported revenue for the quarter ended Sept. 30, 2009 of $49.8 million, compared to $66.5 million in the third quarter of 2008. Operating loss for the third quarter of 2009 was $(11.7) million, compared to $(3.5) million for the third quarter of 2008.President and CEO Robin Marino said retail sales of Martha Stewart products were solid in the quarter, with a strong performance by the Martha Stewart Collection at Macy's and Martha Stewart Crafts at Michaels. Merchandising revenues for the quarter were $8.9 million, compared to $14.6 million in revenues for the third quarter of 2008. The company said prior-year results benefited from the final revenue true-up from Sears Canada, a relationship that ended in the third quarter of 2008. In addition, the 2009 third quarter results include expected lower royalty revenue from Kmart as the relationship winds down. Third quarter operating income for the segment was $3.5 million, compared to $8.6 million in the third quarter of 2008.
During the quarter, the company announced a new relationship with The Home Depot to develop an exclusive Martha Stewart Living brand of home improvement products in select categories, including Outdoor Living, Home Storage and Organization and Home Décor. Products are expected to start rolling out in The Home Depot stores across both the U.S. and Canada beginning in January 2010. Both companies are in the process of developing additional product offerings that will be available in 2010, and more details will be announced in the first part of next year.
Charles Koppelman, executive chairman and principal executive officer, said, “We look forward to January, when we begin a new era for Martha Stewart Living Omnimedia with The Home Depot, giving us a distribution platform at the world's largest home improvement retailer."
MSLO has also entered into a multi-year relationship with Age Group Ltd to manufacture, market and sell pet-care products, available at PetSmart, Inc. beginning in the second quarter of 2010.
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