JCPenney Obligation Boosts Martha Stewart Q1 Revenue

For the first quarter ended March 31, Martha Stewart Living Omnimedia posted a total operating loss of $2.2 million versus a loss of $3 million in the year-earlier period. Basic and diluted net loss per share was five cents for both the first quarter of 2014 and 2013, which, in this year’s quarter, incorporates a planned $2.1 million accelerated amortization related to vacating space in the company’s headquarters.

Revenues totaled $33.3 million versus $37.2 million in the first quarter of 2013, with the fall off largely due to lower digital and print advertising revenues, MSO stated. However, merchandising revenues, which are based on sales and royalties from Martha Stewart branded product sales, gained, reaching $13.1 million versus $11.5 million in last year’s quarter. The gain, however, came mainly from non-cash revenue from J.C. Penney’s return of MSO shares and the recognition of the retailer’s minimum royalties given no comparable revenue in the first quarter of 2013, the company noted.