Martha Stewart Fortunes Grow As Internet Business Gains Toehold

Martha Stewart Living Omnimedia Inc. reported $77.1 million in second-quarter revenue, up from $73.4 million a year ago. The company generated net income of $328,000, a turnaround from the $6.6 million loss it sustained in second-quarter 2007. The quarter ended June 30.

While the firm’s $3.2 million in Internet revenue represented a comparatively small part of its fortunes, this channel is growing. The company’s Internet revenue a year ago was $5.2 million, but that figure included $2.7 million from Martha Stewart Flowers. Martha Stewart Flowers’ revenue is now recorded under the company’s merchandising segment.

Absent the flowers’ input, second-quarter 2007’s Internet revenue stood at $2.5 million. The company attributed the gains to advertising revenue growth among its online properties.

Martha Stewart Living’s floral business is now in a partnership with 1-800-Flowers.com. The unit reported year-over-year average order value increases of 30%.