Martha dips spoon in housing market
DEAL WITH KB HOME Model homes ‘ inspired’ by decorating diva to hit North Carolina in 2006
houses was US$219,900 in 2004, according to the company’s annual report.
KB Home said it selected Cary for the first homes because of its proximity to North Carolina’s Research Triangle Park, which houses several multinational companies and 100 firms involved in research and development work. As a result, the homes will be near higher-end customers.
Martha Stewart Living Omnimedia has accelerated its efforts to get its founder’s brand into the spotlight and regain earnings momentum since she completed a prison term in March for lying to investigators about a stock sale.
Ms. Stewart is on two television shows — her prime-time spin-off of The Apprentice and her daily talk show — and is launching a Sirius Satellite Radio channel and how-to videos.
Even so, shares of her namesake company are down about 40% since her release from prison, and ratings of her prime-time reality show have been lower than hoped.
In early New York Stock Exchange trading, KB Home shares slipped 66¢ , or 1%, to $63.84, while Martha Stewart stock rose 26¢ , or 1.2%, to $21.76. NEW YORK •
Martha Stewart has struck a deal with builder KB Home that extends the lifestyle expert’s housewares brand into the houses themselves.
Martha Stewart Living Omnimedia Inc. and KB Home said yesterday the first model homes imprinted with Ms. Stewart’s style sense will be completed in 2006.
The first group to go on sale will include 650 houses in Cary, N. C., under the name “KB Home Twin Lakes: Homes Created with Martha Stewart,” the companies said.
The houses will be “inspired” by Ms. Stewart’s homes in New York and Maine, the companies said. Ms. Stewart will also select flooring, faucets, cabinets and other fixtures for home buyers to choose from at a KB Homes showcase.
Prices of the homes will range from the low-US$200,000s to the midUS$400,000s for 1,500 to 4,100 square feet of space.
The agreement, the terms of which were not disclosed, reflects a move toward higher-end customers for KB Home. The average selling price for its