Martha Stewart Living Posts Larger Than Expected L
New York, NY, May 7--Martha Stewart Living Omnimedia Inc. on Friday posted a larger than expected quarterly loss, hurt by an advertising drop-off at its media properties during its high-profile founder's criminal trial.
Martha Stewart Living, whose founder was convicted in March of lying to investigators about a personal stock sale, also said it was reviewing all of its operating assets and forecast another loss for the current second quarter.
The company also said it foresees "evolutionary changes" ahead. It said it would retain Stewart's name on her flagship Martha Stewart Living magazine but place "greater emphasis on the name 'Living' as the brand label."
The company recorded a first-quarter net loss of $20.3 million, or 41 cents a share, compared with a loss of $4.5 million, or 9 cents a share, a year ago.
Analysts, on average, were expecting a loss of 20 cents a share, according to earnings tracker Reuters Research, a unit of Reuters Group Plc.
Quarterly revenue fell to $44.5 million, down from $58 million a year earlier.
The company forecast a second-quarter loss in a range of 35 cents to 40 cents a share.
Stewart resigned as an officer and board member of her namesake company after her criminal conviction, but she remains founding editorial director. She also is the company's controlling shareholder.
