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Martha Stewart Living Omnimedia Inc. continues its Internet sales channel growth, but the resurgence is coming more from paid advertising and content. Internet revenue rose 24% year-over-year to $5.4 million in the fourth quarter of 2006.
Martha Stewart Living Omnimedia Inc. continues its Internet sales channel growth, but the resurgence is coming more from paid advertising and content than from online retailing.
Internet revenue rose 24% year-over-year to $5.4 million in the fourth quarter of 2006 from $4.3 million in the fourth quarter of 2005. Operating income was $200,000 in the fourth quarter of 2006, compared with operating income of $100,000 in the fourth quarter of 2005.
For 2006, Martha Stewart, No. 367 in the Internet Retailer Top 500 Guide, posted Internet revenue of $15.8 million, an increase of 40% from $11.3 million in 2005.
“We are introducing our new web site and offering a rich multimedia experience, with enhanced search and guided navigation to expose the most relevant content from our site and the web,” says Martha Stewart president and CEO Susan Lyne. “Our digital offerings will continue to evolve throughout 2007 with features that allow for greater personalization as well as social networking and community.”
After several lackluster years of e-commerce sales, Martha Stewart began diversifying its digital content and web merchandising strategy in 2006. Under an agreement Martha Stewart has with Eastman Kodak Co., the two companies are launching a new line of personalized photo products such as cards, stationery, invitations, photo books, calendars and stickers. Martha Stewart will design the product line and carry the items online at MarthaStewart.com while Kodak will supply materials and photo processing services. With the new service customers will be able to upload personal photos, choose from a menu of design templates, and create personalized cards and other items.
Martha Stewart also will introduce the Martha Stewart collection of home products at Macy’s and on Macys.com in late summer.