Martha Stewart revealed that her licensing partnership with Kmart once generated as much as $65 million a year in royalties. The income helped fund the development of her magazine and business, eventually supporting the 1999 public listing of Martha Stewart Living Omnimedia, which made her the first female self-made billionaire in the US, according to fortune.com.
Stewart first worked with Kmart in 1987 as a lifestyle consultant and spokesperson for its home division, but the partnership ended in the early 1990s amid quality control issues and the retailer's financial struggles. When Floyd Hall became Kmart's CEO in 1995, he aimed to revive the company and re-engaged Stewart. In 1997, Kmart launched Martha Stewart Everyday, a line of home goods sold exclusively at its stores, expanding beyond linens over time, fortune.com reported.
The deal was notable for its scale, with Stewart describing it as her first major source of income. The royalties from Kmart were instrumental in building her brand and business empire before the rise of influencer marketing as a recognized profession. Stewart acknowledged that Kmart wanted her to act as an influencer, a term not widely used at the time, highlighting the early intersection of celebrity and retail partnerships, according to fortune.com.
Stewart, now 85, discussed the partnership on MasterClass's Other People’s Business podcast. The $65 million annual royalty figure underscores the financial impact of her collaboration with Kmart, which helped lay the foundation for her broader business success and public offering in 1999.