Martha Stewart Revenue Up 16%, Yankee Candle Sets Record

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Second-quarter revenue for Martha Stewart Living Omnimedia Inc. rose 16 percent to $78.6 million from $67.8 million in the prior year's quarter, the New York company said yesterday, while EBITDA increased 38 percent to $16.2 million from $11.8 million.


"We recognize that the investigations and related speculation and media attention surrounding a personal sale of non-company stock by Martha Stewart present challenges for our company," Sharon Patrick, president and chief operating officer, said in a statement.


Internet/direct commerce revenue fell to $8.1 million from $11.1 million in the prior year's quarter, reflecting lower catalog circulation.


The Internet/direct commerce segment's EBITDA loss was $6.7 million in the quarter, compared with $5.8 million for the prior year's quarter, reflecting lower margin revenue associated with inventory clearance sales and higher fulfillment costs associated with the transition to a new call and fulfillment center.


Income from continuing operations for the quarter rose 51 percent to $13.1 million from $8.6 million in the same period a year ago. Net income from continuing operations was $8.1 million, or $0.16 per share, compared with $5.7 million, or $0.12 per share, in the second quarter of 2001.


Also, Yankee Candle Company Inc. yesterday said total sales in the fiscal second quarter ended June 29 were a record $81.3 million, up 31 percent from the year-ago quarter, the South Deerfield, MA, company.


Wholesale sales, including European operations, totaled $40.2 million, a 43 percent increase. Retail sales were $41.1 million, a 20 percent rise over the fiscal 2001 second quarter.


Comparable sales in the 156 retail stores that have been open more than one year and mail-order hub fell 2 percent, and retail comparable store sales dropped 5 percent in the quarter. Yankee Candle opened 16 retail stores and entered one new state, Iowa, in the second quarter, ending the quarter with 218 stores in 40 states.


Net income for the fiscal second quarter rose 312 percent to $5.9 million from $1.4 million in the prior-year quarter. Operating profit increased 103 percent to $10.7 million from $5.3 million.


For the first six months of 2002, sales totaled $169.5 million, a 23 percent increase over the first six months of 2001. Wholesale sales, including European operations, were $86.3 million, a 26 percent increase. Retail sales were $83.2 million, a 21 percent increase.


Comparable store sales in the 156 stores that have been open more than one year and mail-order hub dropped 1 percent in the first six months of 2002. Retail comparable store sales fell 5 percent.


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