Zacks_Analysts' Blog : Martha Stewart Tries on Sandals - Analyst Blog

Martha Stewart Living Omnimedia (MSO) has recently entered into a partnership with Sandals Resorts International (SRI). The partnership aims to bring customizable Martha Stewart Weddings commencing January 1, 2010 to all couples interested in destination weddings at resorts or beaches across the Caribbean.

The bookings will start from October 2009 for any of the 12 Sandals Resorts or 4 Beaches Family Resorts. Destination weddings now represent 31% of all weddings, up from the previous range of 10% to 12%.

In addition, Martha Stewart will bring its craft expertise to the guests at resorts and beaches. Martha Stewart's crafts business continues to be robust, driven by ongoing distribution expansion, integrated marketing initiatives and an ever-improving line-up of products.

The partnership provides a boost to the Martha Stewart’s growing weddings franchise, which began in 1994 with the launch of Martha Stewart Weddings magazine. Since then, the company has gained a significant position in the category.

The company is attempting to grab a bigger slice of the wedding-related market, and has also acquired a 40% stake in WeddingWire, which helps couples plan and manage their wedding on marthastewart.com.

Martha Stewart is a leading creator of original how-to content and related products for homemakers and other consumers. The company supplies creative domestic solutions through its published materials, including magazines, books, television programs, and the Internet.

The company markets primarily to homemakers in the 25–54 age bracket. Topics covered include the home, weddings, babies, cooking, housekeeping, entertaining, holidays, gardening and crafts.

We maintain a Hold recommendation on the stock.