Martha Stewart Living Posts Wider 2Q Loss Then Exp
New York, NY, August, 3-- Martha Stewart Living Omnimedia posted a loss of $19.29 million, or 39 cents per share, in the second quarter, in contrast to a profit of $931,000, or 2 cents per share, in the year-ago period.
Analysts surveyed by Thomson First Call expected a loss of 33 cents in the second quarter.
Total revenues were down 33 percent to $44 million from $65.8 million a year ago, dragged down particularly by its publishing division, which has suffered from a defection of advertisers.
The company said it expects to post a loss of 50 cents per share in the third quarter, reflecting higher marketing costs in the period. Analysts anticipated a loss of 33 cents per share.
However, the company predicted that fourth-quarter losses should be "substantially reduced" compared to third-quarter levels largely due to the significant amount of revenues to be recognized by its merchandising segment as a result of certain minimum royalty guarantees.
