Monday, August 11, 2003
Westporter Martha Stewart, facing a January trial on charges of obstructing justice in connection with an insider-trading scandal, is also facing lower profits at her company as result.
Martha Stewart Living Omnimedia Inc. today posted sharply lower quarterly profit, forecast wider-then-expected losses ahead and said it would remain under pressure until the legal problems of its namesake founder had been resolved.
The company reported lower second-quarter publishing and merchandising results as selling, promotion, general and administrative costs increased.
“We believe that the Martha Stewart Living core brand will continue to be under pressure until resolution of Martha Stewart’s personal legal situation,” Martha Stewart Living Omnimedia said in a statement.
The company, which publishes Martha Stewart Living magazine and sells a line of home products at retailer Kmart, reported second-quarter net income of $931,000, or 2 cents per share, compared with $6.7 million, or 14 cents per share, a year earlier.
Operating income was $1.5 million, down from $13.1 million a year earlier. Revenue fell to $65.8 million from $78.6 million.
Posted 08/11/03 at 01:13 PM Permalink