MSLO Q4 Net Balloons; Company Slashes Loss for Fiscal Year
NEW YORK-Martha Stewart Living Omnimedia (MSLO) reported a 528.5 percent jump in fourth-quarter net income to $7 million, reducing its net loss for the fiscal year to $1.8 million from $56.1 million in the previous fiscal year.
Dan Dienst, MSLO's CEO, attributed the quarterly bottom-line success to "some aggressive and important steps ... to align our cost structure with marketplace realities and, more importantly, become nimbler, more efficient generators of ideas, inspirations, content and product. We also promised to put to bed several pieces of notable and distracting litigation, and we did so." During the quarter, MSLO reached a settlement of its legal dispute with Macy's regarding the sale of Martha Stewart-branded home merchandise at J.C. Penney.
Selling, promotion, general and administrative expenses dropped 18.6 percent in dollars and 148 basis points as a percentage of total revenues, to 44.7 percent. MSLO also cut 31.4 percent in production, distribution and editorial costs.
Total revenues in the quarter, which ended on Dec. 31, were down 15.9 percent to $47.4 million. Merchandising revenues posted a 12.3 percent increase. For the fiscal year, total revenues fell 18.7 percent to $160.7 million, which included a 4.2 percent increase in merchandising revenues.