Martha Stewart Unveils Merchandise for QVC

Shares of Sequential Brands Group dropped 30.4 percent in early morning trading after the company missed Wall Street’s third-quarter estimates.

The brand management firm posted a net loss of $24.7 million, or 38 cents a diluted share, against net income of $1.3 million, or 2 cents, a year ago. On an adjusted basis, net income totaled $6.5 million, or 10 cents a diluted share, compared with net income of $7.5 million, or 12 cents, a year ago. Net revenues slipped 7 percent to $39 million from $42 million.

Wall Street was expecting EPS of 14 cents on revenues of $43.7 million.

Investors were not happy and sent shares of Sequential down to $1.65 in midmorning trading on the Nasdaq.

Karen Murray, chief executive officer of Sequential Brands Group, said, “While third-quarter results were softer than expected, we experienced growth with several of our core brands and executed on key new initiatives in the quarter, including the successful launch of our new Martha Stewart partnership with QVC.”

Murray added that the company remains “focused on driving long-term organic growth across our portfolio, maintaining disciplined cost controls and improving our capital structure.”

The company said it is now expecting revenue at between $165 million to $169 million, and a net loss of between $8.4 million to $10.4 million due to non-cash impairment charges. Sequential also said that its “contractual guaranteed minimum royalties for 2017 are approximately $120 million.”

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