MSLO Net Rises 2.3 Percent in Fourth Quarter
NEW YORK-Martha Stewart Livings Omnimedia ended its fiscal year on Dec. 31 with fourth-quarter net income of $4.2 million, 2.3 percent ahead of the fourth quarter of 2010.
For the fiscal year as a whole, the company reported a net loss of $15.5 million, compared to a net loss of $9.6 million in the prior year. The fourth quarter's bottom line received a boost from "other income," primarily consisting of the sale of MSLO's equity interest in WeddingWire.
Total revenues for the quarter fell 15 percent to $61.7 million. Merchandising revenues finished the quarter up 13 percent to $13.1 million, driven by positive results from the Martha Stewart Living line at The Home Depot, strong textiles sales in the Martha Stewart Collection at Macy's and healthy sales growth for Martha Stewart Pets at PetSmart. For the fiscal year, total revenues were down 4.1 percent to $221.4 million, while merchandising revenues jumped 13.6 percent to $48.6 million.
Selling, promotion, general and administrative expenses declined 8.8 percent in dollars. As a percentage of sales, they rose 289 basis points to 42.5 percent.
Lisa Gersh, MSLO's president and chief operating officer, said the quarter's results "underscore the importance of our work to return Martha Stewart Living Omnimedia to growth and profitability." Gersh added that the company expects merchandising revenues and margins to improve this year, and that the outlook is "bullish" for this sector of the business in light of the company's recently announced alliance with J.C. Penney and the extension of its relationship with Home Depot.