Martha Stewart Omnimedia Inc.'s revised contract with Kmart gave some needed lift to its merchandising revenue, as the company's other segments either stagnated or fell during its first quarter. Direct and Internet sales were particularly hard hit.
The company's first quarter revenue was $68.7 million, down from $70.3 million in first quarter 2001. Its net income dropped from $6.2 million to $2.9 million.
The company's Internet and direct marketing was the hardest hit during the quarter. Revenue for this segment fell to $7.8 million from $9.5 million a year ago. The company mailed out fewer catalogs and generated additional expenses when it moved its fulfillment and call centers. It also took a loss on The Wedding List, a wedding registry and gift business it acquired in March 2001.
Publishing dropped from $46.6 million to $43.1 million, but the company published one less "special issue" during the quarter over last year.
Television made a modest gain, from $6.4 million to $6.7 million, and merchandising rose from $7.8 million to $11.1 million.
During the quarter, the New York-based company cut 40 jobs, primarily from its online and direct mail operations. The move left 600 employees at Martha Stewart.
