Martha Stewart catalog sales, earnings falls

While officials are still investigating Martha Stewart’s stock transactions, Martha Stewart Living Omnimedia (NYSE: MSO) reported a 4% rise in third-quarter revenue, to $70.9 million for the three months ended Sept. 30. Earnings before interest tax, depreciation and amortization (EBITDA)fell 35%, however, to $7.3 million from $11.2 million a year ago.

Revenue in the Internet/Direct Commerce segment, which includes Martha Stewart The Catalog for Living, decreased 12%, to $8.0 million from $9.1 million last year, reflecting circulation cuts. The segment's EBITDA loss was $5.9 million for the quarter, compared with $5.2 million last year. The New York-based company blamed the increased loss on lower gross margin revenue associated with inventory clearance sales and higher fulfillment costs resulting from system integration issues at its new fulfillment center.