• by Erik Sass  @eriksass1, July 30, 2013

Martha Stewart Living Omnimedia reported that revenues fell 11.9% from $47.9 million in the second quarter of 2012 to $42.2 million in the second quarter of 2013, as an increase in merchandising revenues was offset by decreases in publishing and broadcasting.
 
Total publishing revenues tumbled 16% from $28.8 million to $24.2 million, due largely to the absence of Whole Living and Everyday Food, which were closed toward the end of 2012. On a same-title basis, MSLO’s other magazines actually saw total print advertising revenues increase slightly, according to MSLO interim Principal Executive Officer Dan Taitz. Digital advertising revenues also increased in the quarter.
 
Broadcast revenues decreased from $4.6 million to $1.9 million, again reflecting the strategic restructuring undertaken last year, as MSLO decided to exit live television programming production.
 
As in previous quarters, merchandising was the main bright spot for MSLO, which saw total revenues from product licensing deals with retailers jump 11% from $14.5 million in the second quarter of 2012 to $16.1 million in the second quarter of 2013. Much of this increase was attributed to MSLO’s merchandising deal with JCPenney, including product lines like MarthaCelebrations, MarthaPantry, MarthaWindow, MarthaRugs, MarthaLighting and MarthaMirrors.
 
While the JCPenney merchandising deal is providing a much-needed boost to MSLO’s bottom line, the fate of the partnership remains in question, as JCPenney and MSLO battle it out in court with Macy’s, which claims exclusivity for its own merchandising deal with Martha Stewart.
 
JCPenney won one round in the legal dispute in April, when New York State Supreme Court Justice Jeffrey K. Oing ruled the retailer can continue selling Martha Stewart-branded products while the case proceeds. Oing dismissed a preliminary injunction from Macy’s that sought to stop JCPenney from selling Martha Stewart goods immediately, before a final legal decision has been made.

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