Martha Stewart and Kmart refreshing Everyday program
Furniture Today Staff -- Furniture Today, August 1, 2007
New York – Martha Stewart Living Omnimedia (MSLO) president and ceo Susan Lyne said the company is providing plenty of new design direction for its Everyday program at Kmart – even while noting on today’s earnings call that second quarter revenues from the program fell.
“It’s been a long time since soft home was completely refreshed,” Lyne said of the Kmart merchandising of Martha Stewart Everyday. In preparation for the new fall product mix, she noted, Kmart is in the process of clearing out old and outdated Everyday soft goods, “dropping it down to nothing,” to make room for the new programs.
But Lyne warned that, unlike its other retail partnerships, MSLO has “no control over inventory levels in [Kmart’s] stores, whether it’s new or old categories, and we’re not involved in their visual presentation.”
Meanwhile the main event is the planned September 10 official marketing and merchandising kick-off of the Macy’s exclusive Martha Stewart Collection program, which will encompass some 2,000 skus.
“Macy’s has been an extraordinary partner,” Lyne continued. “They know well our brand and the product assortment. This is a huge win for them. It is really differentiated product that only Macy’s will be able to offer people, so they’re putting a lot behind it both in their stores and in their marketing.”
MSLO reported an operating loss for the second quarter of $7.8 million, compared to the $1.8 million loss in the same period one year ago. Sales of $73.4 million were up 7.7% from $68.2 million last year.
Howard Hochhauser, cfo, said the company will maintain its full-year guidance range of $330.0 million to $340.0 million, operating income guidance in the range of $9.5 million to $12.5 million, and adjusted EBITDA guidance in the range of $34.0 million to $37.0 million.
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