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Martha Stewart shares rally on Kmart
Anticipation of wider distribution of Everyday brand lifts shares to level not seen in 2-1/2 years.
November 17, 2004: 10:51 AM EST

NEW YORK (CNN/Money) - Shares of Martha Stewart Living surged to a two-and-a-half year high Wednesday after Kmart agreed to purchase Sears in a deal that could greatly expand the distribution of the home decor maven's signature brand.

Martha Stewart Living Omnimedia (up $3.20 to $20.60, Research) shares jumped 15 percent to a trade around the $20 level after the two retailing heavyweights announced the $11 billion merger. The last time the stock had touched the $20 level was in mid-May of 2002.

The stock had seen a strong run before the Kmart-Sears merger as Martha Stewart decided to serve her jail sentence before a court ruled on an appeal in her obstruction of justice case and reality TV show producer Mark Burnett agreed to make a show based on Stewart.

Even as Martha Stewart serves out her five-month sentence in a West Virginia prison, her namesake Everyday brand has remained a fixture at Kmart (Research), which emerged from bankruptcy protection in May 2003.

Analysts expect the new company, Sears Holdings, will provider shoppers a mall-based, low-cost option to leading retailers Wal-Mart (Research) and Target (Research).  Top of page




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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.