Stewart Living Omnimedia reported that revenues fell 11.9% from $47.9 million in the second quarter of 2012 to $42.2 million in the second quarter of 2013, as an increase in merchandising revenues was
offset by decreases in publishing and broadcasting.
Total publishing revenues tumbled 16% from $28.8 million to $24.2 million, due largely to the absence of Whole Living
, which were closed toward the end of 2012. On a same-title basis, MSLO’s other magazines actually saw total print advertising revenues increase slightly, according to MSLO
interim Principal Executive Officer Dan Taitz. Digital advertising revenues also increased in the quarter.
Broadcast revenues decreased from $4.6 million to $1.9 million, again
reflecting the strategic restructuring undertaken last year, as MSLO decided to exit live television programming production.
As in previous quarters, merchandising was the main bright
spot for MSLO, which saw total revenues from product licensing deals with retailers jump 11% from $14.5 million in the second quarter of 2012 to $16.1 million in the second quarter of 2013. Much of
this increase was attributed to MSLO’s merchandising deal with JCPenney, including product lines like MarthaCelebrations, MarthaPantry, MarthaWindow, MarthaRugs, MarthaLighting and
While the JCPenney merchandising deal is providing a much-needed boost to MSLO’s bottom line, the fate of the partnership remains in question, as JCPenney and
MSLO battle it out in court with Macy’s, which claims exclusivity for its own merchandising deal with Martha Stewart.
JCPenney won one round in the legal dispute in April, when
New York State Supreme Court Justice Jeffrey K. Oing ruled the retailer can continue selling Martha Stewart-branded products while the case proceeds. Oing dismissed a preliminary injunction from
Macy’s that sought to stop JCPenney from selling Martha Stewart goods immediately, before a final legal decision has been made.