Martha Stewart Expands Product Licensing

March 5, 2007  by in UnCategorized   

By Home Furnishings Business in Accessories on March 2007 Martha Stewart Living Omnimedia, New York, reported a 36 percent gain in revenues during 2006 and predicted a strong 2007 thanks, in part, to new product programs that include a new home collection at Macy’s, a crafts products program at Michael’s and the rollout of Martha Stewart Furniture with Bernhardt in 60 Macy’s stores.

For the fourth quarter, Martha Stewart Living Omnimedia saw revenues rise 15 percent to $84.6 million and operating income increase to $14.6 million compared to $2.5 million during the same period of 2005. For the year, revenues increased 36 percent to $288.3 million. The company had a full-year operating loss of $2.8 million compared to a loss of $78.3 million in 2005.

In the merchandising category, which is comprised mainly of licensed products, fourth-quarter revenue increased to $35.2 million from $28.1 million a year earlier. In the company’s earnings release, officials said highlights of the programs include delivering more than 1,500 home-related products to Macy’s for an exclusive Martha Stewart Home Collection that will be launched in late summer. In late May, more than 900 Michael’s stores will introduce a line of 675 crafts and storage products. The statement said sales of Stewart’s Bernhardt line at Macy’s have been “robust” since being introduced in 60 stores.

“We are on track to deliver another strong performance in 2007,” said Susan Lyne, president and CEO of Martha Stewart Living Omnimedia. “This is an important year for us as we continue executing on our strategy to diversify our revenue streams and broaden our channels of distribution,” she said. “We have moved from a period of recovery to one of expansive growth.”