MSLO terse on Macy's, JCPenney
Ronda Whitaker -- Casual Living, April 30, 2013
New York - The rollout of Martha Stewart merchandise that began earlier this month at JCPenney stores will continue well into the second quarter, but with Macy's still litigating against the deal, Martha Stewart Living Omnimedia said today there is too much uncertainty around the arrangement to forecast potential revenues from JCP.
Dan Taitz, who is serving as interim principal executive officer while MSLO seeks a new ceo, said the company has been in touch with returning JCP ceo Mike Ullman and other executives since the ouster last month of Penney chief Ron Johnson, who brokered the deal with Martha Stewart.
"All sides greatly value our partnership and we look forward to working with the new team," he added.
For the first quarter ended March 31, MSLO's merchandising revenues fell 15.6% to $11.5 million - in line with expectations. Operating income for the segment contracted 39.8% to $5.7 million, while adjusted EBITDA (earnings before interest, tax, depreciation and amortization) fell 52.7% to $6.2 million.