Martha Stewart (MSO) Lower After Show Cancelled
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Shares of Martha Stewart Living (NYSE: MSO) are trading down 2.5 percent after being on a rollercoaster ride today.
Reports indicate Hallmark Channel has informed Martha Stewart that the economics of he show no longer fits with the channel, largely due to its sparse audience. Although this news may seem extremely negative for the company, the New York Post highlights the company’s president, Lisa Gersh, informed investors of plans to possibly bring the show in-house or find a cheaper cost space. Lisa Gersh made these comments during a UBS investor conference.
The Martha Stewart Show is still expected to be on air until September, but shows airing after April will be reruns.
This is not the only bad news that MSO investors have heard recently. Home Depot (NYSE: HD) announced on January 3 that their retail stores would no longer offer Martha Stewart Living-branded paints. The home improvement store will still hold MSO’s color palette as customers will be able to mix Martha's palette into Glidden branded paints.
On the positive side, MSO also recently reported retailer JCPenny (NYSE: JCP) announced a retail deal and purchased a 16.6 percent stake in the company for $38 million. While investors really favored the news and pushed the stock up 33 percent to over $4.00 per share, other large retailers like Macy's (NYSE: M) noted their frustration with the company.
Reports indicate Hallmark Channel has informed Martha Stewart that the economics of he show no longer fits with the channel, largely due to its sparse audience. Although this news may seem extremely negative for the company, the New York Post highlights the company’s president, Lisa Gersh, informed investors of plans to possibly bring the show in-house or find a cheaper cost space. Lisa Gersh made these comments during a UBS investor conference.
The Martha Stewart Show is still expected to be on air until September, but shows airing after April will be reruns.
This is not the only bad news that MSO investors have heard recently. Home Depot (NYSE: HD) announced on January 3 that their retail stores would no longer offer Martha Stewart Living-branded paints. The home improvement store will still hold MSO’s color palette as customers will be able to mix Martha's palette into Glidden branded paints.
On the positive side, MSO also recently reported retailer JCPenny (NYSE: JCP) announced a retail deal and purchased a 16.6 percent stake in the company for $38 million. While investors really favored the news and pushed the stock up 33 percent to over $4.00 per share, other large retailers like Macy's (NYSE: M) noted their frustration with the company.
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