Why Martha Stewart Living Omnimedia, Inc. Shares Jumped

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Martha Stewart Living Omnimedia were looking fashionable today, climbing as much as 12%, and finishing up 9% after the company settled its dispute with Macy's this morning.

So what: Terms of the settlement were not disclosed, but the media company said they were not material to its financial results. The dispute had started when Macy's sued MSLO and J.C. Penney in 2012 after those two companies formed a partnership to open Martha Stewart home shops within Penney's department stores, which infringed upon what Macy's claimed to be exclusive rights to the sell branded Martha Stewart merchandise. MSLO management said the resolution gives it the opportunity to "return our focus to what we do best -- bringing beautifully designed, high quality, affordable products to consumers nationwide."


Now what: The best part of the conclusion to the legal dispute seems to be that the effects were not material to Martha Stewart. Still, the company would seem to have bigger problems to deal with, as it's not currently profitable, and has seen sales fall in each of the last two years as the Martha Stewart brand continues to lose its star power. With the inexorable rise of digital media, the company's future looks even less certain. I'd tread carefully with this one.

What to buy in 2014
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

The article Why Martha Stewart Living Omnimedia, Inc. Shares Jumped originally appeared on Fool.com.

Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts Don't Get Too Close To a Newborn Giraffe Unless You Want to Get Kicked in the Nuts
Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside Cops Catch Up To A Suspicious Speeding Vehicle - And Make An Appalling Discovery Inside
If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic If You Find One Of These In Your Yard, Don't Touch It - And Try Not To Panic