New York, NY, Aug. 11--Martha Stewart Living Omnimedia, the retail and lifestyle empire built around its namesake founder, on Monday reported lower second-quarter profit as revenue fell 16.3 percent.
The company reported lower publishing and merchandising results, the lifeblood of its operations, as selling, promotion, general and administrative costs increased during the quarter.
Stewart, who recently stepped down as chairman and chief executive of her own company amid an insider trading scandal, is set to go on trial in January.
"We believe that the Martha Stewart Living core brand will continue to be under pressure until resolution of Martha Stewart's personal legal situation," the company said in a release.
The company, which publishes Martha Stewart Living magazine and sells a line of home products at retailer Kmart, posted net income of $931,000, or 2 cents per share, compared with a profit of $6.7 million, or 14 cents per share a year earlier.
Operating income for the second quarter was $1.5 million compared to $13.1 million a year ago.
The company said it sees a third-quarter loss per share of about 15 cents and a full year 2003 loss per share between 18 cents and 20 cents.
Second-quarter revenue fell to $65.8 million, from $78.6 million a year earlier.
Publishing revenue dropped 16.3 percent to $39.62 million, reflecting lower advertising and circulation revenue in its flagship Martha Stewart Living magazine.
Revenue at its merchandising unit plunged 26.4 percent to $11.8 million hit by the closure of some Kmart stores and the elimination of some garden products, the company said.
Martha Stewart Living Omnimedia shares, down 19 percent this year, closed at $7.98 on Friday.
