Revenues Fall at Martha’s Corporate Alter Ego, Shares Follow

01 May 2003

Martha Stewart Living Omnimedia, the commercial extension of America’s fallen homemaking and style saint, saw its shares fall a further eight percent this week in the wake of a 15% slump in Q1 revenues.

In a statement to the New York Stock Exchange (of which she was a director until resigning after accusations of insider trading), Martha Stewart blamed the publicity engulfing her role in the ImClone affair which has led to her investigation by the US Securities and Exchange Commission and Department of Justice.

“Our business results reflect considerable pressure associated with the continuing governmental investigations of my sale of non-company stock,” read Stewart’s statement. As yet, she has not been charged with wrongdoing.

Other involved in the scandal – notably former ImClone chairman Samuel Waksal, a close friend of Stewart’s – have been charged and admitted guilt. And only this week Waksal’s brother Harlan resigned as president/ceo of the company along with co-director Robert Goldhammer

Data sourced from: Times Online (UK); additional content by WARC staff