Martha Stewart Living Omnimedia Inc. reported a plunge in net income of 86% for the 2003 second quarter. Net income was $931,000 for the period ended June 30, compared with $6.7 million for the same quarter last year.
Operating income was $1.5 million, compared with $13 million for the second quarter in 2002.
Revenue fell to $65.8 million from $78.6 million.
The Internet/direct commerce division experienced the smallest loss among all the Martha Stewart divisions—falling 3% to $7.8 million from $8 million last year.
"We believe that the Martha Stewart Living core brand will continue to be under pressure until resolution of Martha Stewart’s personal legal situation," said Sharon L. Patrick, CEO, in a statement.
Patrick said the strategy going forward is to sustain the core Martha Stewart properties, while investing in new properties like Everyday Food and controlling costs whenever possible. Wider-than-expected losses are to be expected, she said.
Stewart stepped down as CEO and chairman of the company in June, buffeted by an insider trading scandal. She is to go on trial in January on charges of obstructing justice.
