Martha Stewart Living Omnimedia on Thursday posted a quarterly profit, compared with a year-earlier loss, but the company said advertising sales continue to suffer amid the legal woes of its founder.
The media and merchandising company also said it has "prepared for the various possible outcomes" of Stewart's trial on obstruction of justice charges. Jury deliberations in the case began on Wednesday.
In a statement, Chief Executive Sharon Patrick said fourth-quarter results were better than expected, but "nevertheless, we continued to feel the negative impact of the events surrounding Martha Stewart's personal legal situation."
For the fourth quarter, operating profit totaled $5.8 million, or 10 cents a share. Revenue slipped to $70.9 million, from $77.6 million in the prior-year quarter.
The company posted an operating loss of 3 cents a share in the year-earlier period. Excluding a special restructuring charge, the company recorded a profit of 6 cents a share in the 2002 period.
Analysts on average, were expecting profit of 6 cents a share for the 2003 fourth quarter, according to research firm Reuters Research, a unit of Reuters Plc.
The company said it expects to post a loss of roughly 20 cents a share for the current first quarter.
Stewart's company has not been accused of any crimes. But analysts say its future could hinge on the outcome of its founder's trial because the business is so closely tied to her personal reputation.
