The share price of Martha Stewart Living Omnimedia rose today (January 3rd) after the company reached a settlement with fellow companies Macy's and JC Penney.
Stocks were up by ten per cent before falling away later in the day after an agreement was reached over the firm's home goods products, which were sold for a period in JC Penney shops.
Macy's claimed that this move violated an earlier deal it had to sell Martha Stewart home goods products in its stores from 2006. The terms of the settlement will remain confidential, but Macy's stated that it was pleased with the decision that was made.
"This settlement does not affect Macy's outstanding claim against JC Penney, which remains subject to the court's decision," the company noted in a statement.
JC Penney and Martha Stewart previously announced their intention to scale back their partnership. The companies revealed that they intend to eliminate the sales of certain home, cooking and bath products in the coming months.
Macy's added: "We can now return our focus to what we do best – bringing beautifully designed, high quality, affordable products to consumers nationwide. We look forward to a continued, successful partnership together."
Martha Stewart has gone through a difficult period in the last 12 months, with the legal battle with Macy's and JC Penney taking up much of the company's focus over the course of 2013.
But 2014 looks set to be a better year for the firm, with its stocks ending the day up 8.81 per cent on the New York Stock Exchange after news of the settlement with Macy's was released.
Stocks rose to 4.57, which is only slightly down on the 52-week high of the firm's share price, which currently stands at 4.70 and was set earlier in the day.
The share price of Martha Stewart has slipped to as low as 2.20 in the last 12 months.
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