- When US lifestyle guru Martha Stewart was found guilty
of lying in March, it was assumed that her once-admired brand would be
irrevocably tarnished.
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- In fact, it seems to be going from strength to strength.
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- Kmart, the supermarket chain which sells a wide range
of Martha Stewart products, has agreed to extend its contract out to 2009.
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- And the company that markets Martha Stewart furniture
said sales had soared since her trial hit the headlines.
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- Market movements
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- Both announcements are a relief for Martha Stewart Living
Omnimedia, the company created by Ms Stewart as a vehicle for her lifestyle
products.
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- Omnimedia's entire business is based around Ms Stewart,
and investors had been thrown into panic by her conviction as part of a
share-trading scandal.
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- The Kmart alliance is especially crucial, since the retailer
is the main channel for Martha Stewart Everyday products - a range of homewares
ranging from barbecue tools to baby blankets.
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- The range accounted for one-fifth of Omnimedia's $245m
(£137m) in sales last year.
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- As part of its agreement with Kmart, Omnimedia also cleared
up a bitter dispute over royalties, where each side accused the other of
welshing on a 2001 contract.
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- Home affairs
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- Meanwhile, Bernhardt Furniture, which also works under
the Martha Stewart brand, said business had never been better.
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- The company said it had been worried that sales would
take a hit when Ms Stewart was convicted.
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- But over the past six weeks, it said sales growth had
been in the "double-digits".
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- Bernhardt is launching a new 62-piece Martha Stewart
collection, and has yet another lined up for 2005.
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- Shares in Omnimedia, where Ms Stewart is a director but
no longer in charge, have been more or less steady since her fall from
grace.
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- © BBC MMIV http://news.bbc.co.uk/2/hi/business/3664431.stm
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