Martha Stewart Catalog to Close

As revenue at Martha Stewart Living Omnimedia continues to tumble, the New York-based company plans to eliminate its catalog business by year’s end.

Second-quarter revenue from the direct commerce business, which includes catalog and Internet, fell 19%, to $6.3 million for the three months ended June 30, compared with $7.8 million last year. Martha Stewart Living president/CEO Sharon Patrick said in a statement that the company wants to cut its direct marketing losses "to ensure that we invest our resources in areas that offer the company its best return on investment."

The company will continue to operate its profitable direct-to-consumer floral business, MarthasFlowers.com, as well as retain its MarthaStewart.com Website as a source of editorial content.

The company’s revenue shortfalls were not limited to its direct business. Total revenue dropped 33%, to $ 44.0 million for the quarter. Revenue from its television business fell 54%, to $3.1 million.

On July 16, Stewart was sentenced to five months in prison and two years' probation for lying to investigators about her sale of ImClone Systems stock in late 2001. After her release, Stewart is to serve five months of home confinement and pay a $30,000 fine.