Sequential Brand Group’s revenue in Q4 ended Dec. 31 rose 3% to $46.9 million, driven largely by its Gaiam and Joe’s Jeans brands, but the company swung to a $162.8 million net loss in from a $658,000 profit a year earlier as it took a $304.1 million non-cash charge tied to its stock price and a change in its book value due to new federal tax laws.

While it posted sales gains in its activewear (Gaiam, Avia, And1) and fashion (Jessica Simpson, Ellen Tracy, Joe’s Jeans) segments, revenue from the company’s home goods business (Martha Stewart) declined due largely to the ending of a seven-year DTR at JC Penney. Sequential also extended its Martha Stewart crafts DTR license with Michael’s to now include party supplies, which will launch in April, CEO Karen Murray told analysts. And Sequential’s DTR at PetSmart for Martha Stewart expired and is being replaced by deals with Fetch for Pets (grooming products) and Design Lab (bedding, apparel, toys) that will launch on Amazon in May.

Macy’s, which has had a DTR for Martha Stewart home goods since replacing Kmart in 2005, is forecasting a 15% increase this year in sales of Martha Stewart Essentials products, Murray said. The collection of bedding, bath and other products is being extended in the fall to include ready-to-assemble furniture, she added.  The Martha Stewart brand also is expanding on QVC, with 48 shows slated to air this year against the 4-5 that launched in Q4. The brand was introduced on QVC in late 2017 with apparel and food and will added another eight categories this year, including lighting, cleaning products and crafts).

Sequential also is building out its licensing program for Gaiam having added SDC Nutrition (supplements) in January and is readying a department store capsule collection for brand ambassador Jennifer Biel for the fall, Murray said. The Emeril brand, which Sequential acquired in buying Martha Stewart Omnimedia in 2015, also is expanding cookware via licensee Bradshaw International to Bed Bath and Beyond in the fall. The line already is being sold through Sam’s Club, Lowe’s and QVC.

Contact:

Sequential Brands Group, Karen Murray, CEO, 646-564-2577