Daniel Dienst joined the Martha Stewart machine’s board last August and was named CEO in October. His background is in the scrap metal business, which is about as far from the Martha Stewart cult as it is possible to be. He got the job on the strength of his turnaround abilities, but so far it has been tough going.
The company has made virtually no progress in the past year. The loss per share is the same as first quarter a year ago and revenues are down about 10% as the Martha Stewart brand weakens in both publishing and broadcasting. Publishing revenues are down 20% year-over-year, and the division’s losses grew to $2.8 million for the quarter, up from $1 million last year.
Broadcasting revenue tumbled 45% to $678,000 due to “non-recurring revenue components in the prior year related to our historical Broadcasting operations.” We are not sure what that means, but we can easily see the impact.
Dienst had this to say:
First quarter results reflect the current transition underway at the Company as we start to benefit from the significant changes we made at the end of 2013 to realign our business. We still have work to do but are encouraged by the early results of these decisions. Our efforts in 2014 are now keenly focused on growing our business across all verticals and with existing and new partners. As a company of ideas and inspirations, we are excited about the future growth for our peerless brand.
This is happy talk, not a turnaround plan. If this is the best this company can do, then it is doomed.
Shares were down about 2.7% at $4.00 in the first half-hour of trading Tuesday. The stock’s 52-week range is $2.20 to $5.50, and the consensus price target on the stock is $5.40.
ALSO READ: The 10 Most Hated Companies in America
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
