Martha Stewart Reflects on the $65 Million Kmart Royalty Deal

The Kmart deal, active from the 1990s until 2009, allowed Stewart to retain royalties on every home goods product she designed while the retailer absorbed all advertising costs. Selling nearly $2 billion worth of merchandise provided the capital necessary to launch and sustain her magazine and broader media business. MasterClass CEO David Rogier, who hosted the conversation, noted the scale of the success, as Kmart had initially taken a significant risk on the partnership.

Beyond retail, Stewart detailed a diverse history of income streams. Her early catering business earned her over $1 million annually, while her first cookbook advance netted $100,000. She also highlighted the shifting landscape of modern influence, noting that while she occasionally receives high-value goods in exchange for appearances—such as $40,000 in clothing for a fashion show—securing cash royalties of the Kmart magnitude is increasingly rare in the current market.

Stewart’s career path shifted from a Wall Street stockbroker to a media titan upon the 1999 IPO of Martha Stewart Living Omnimedia. With shares opening at $18 and tripling in value, her 70% stake vaulted her into billionaire status. Despite a 2004 conviction for charges related to insider trading, which resulted in five months of incarceration, she successfully rebuilt her brand, eventually selling her company for $215 million in 2019.