Over the course of the past five years, Martha Stewart shares have fallen from almost $16 to $3.56.
The company’s growth also has died. In the most recently reported quarter, revenue fell to $49.8 million from $52.7 million in the same period a year ago. The corporation lost $3.6 million.
Martha Stewart gave COO Lisa Gersh “a restricted stock unit award in respect of 64,395 shares of MSLO Class A Common Stock.” Part of the reason for this was “her role in consummating the transactions with J. C. Penney Corporation, Inc.” The deal involved JCPenney (NYSE: JCP) buying 16% of MSO, and creating a retail partnership between the companies.
But, JCPenney sales have collapsed since the arrival of new CEO Ron Johnson. And, Macy’s (NYSE: M) filed a lawsuit in January that accuses Martha Stewart Living Omnimedia of violated a preexisting contract. Nice work by Gersh, but will the company take the shares back if Macy’s wins the suit?
Douglas A. McIntyre
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