NEW YORK-Martha Stewart Living Omnimedia (MSLO) posted a first-quarter net loss of $3.6 million, about one-half the $7.1 million net loss reported in the first quarter of last year.
The company managed this mostly through reducing expenses. Selling, promotion, general and administrative expenses fell 7.4 percent in dollars and 104 basis points as a percentage of total revenues, to 48.6 percent. Total operating costs and expenses were down 9.1 percent in the quarter, which ended on March 31.
Total revenues declined 5.4 percent to $49.8 million. MSLO did post a pickup of 33 percent in merchandising revenues, helped by the debut of the Martha Stewart Home Office collection with Avery and by initial design fees under the company’s new agreement with J.C. Penney. In January, MSLO and the department-store retailer announced its agreement whereby J.C. Penney will open Martha Stewart home shops and launch an e-commerce site next year.