Martha Stewart Living Omnimedia Inc., New York, saw its net income drop 12.7% during the second quarter, from just under $6 million in second quarter 2000 to $5.2 million in second quarter 2001, which ended June 30. Revenue during the same period was nearly flat, increasing from $69.2 million to $69.7 million.
While her retail operations were strong, direct marketing is apparently not domestic diva Martha Stewart’s forte: Internet and direct commerce sales took the biggest hits among the company’s four divisions. The division had an operating loss of $6.5 million in the quarter just ended, an increase of 20% from the year-ago net loss of $5.3 million.
In comparison, Martha Stewart’s publishing operation saw its earnings slip from $16.3 million to $15.3 million, while its television activities generated $1.4 million in earnings, down from $1.8 million a year earlier. The merchandising division was the only one that saw an earnings increase, from $5.9 million to $8.6 million.
Revenue for the divisions was similarly mixed, with publishing dropping from $43.1 million to $42.2 million, television slipping from just under $7 million to $6.9 million, and Internet/direct commerce falling nearly 10%, from $13.1 million to $11.8 million. Merchandising was again the only division to see growth, from just under $6 million to $8.8 million.
Martha Stewart attributed the direct commerce and Internet results to lower advertising revenue and product sales, as well as a cutback in catalog circulation. The company said that in the months to come it would expand its online product offerings and increase its online marketing initiatives.
Network
