Martha Stewart Reveals Kmart Deal Behind Her $65 Million Royalties

Martha Stewart has credited a major retail partnership with Kmart for transforming her earnings, revealing that the arrangement generated approximately $65 million in annual royalties when merchandise sales approached $2 billion. In an October 6 appearance on MasterClass' business podcast Other People's Business, the lifestyle entrepreneur discussed how the deal financed her growing business, alongside lessons from financial setbacks and decades of professional experience.

Stewart discussed the partnership with MasterClass founder and CEO David Rogier, explaining that royalties from home goods designed for Kmart represented a major financial milestone after her earlier work running a catering business.

"Kmart was my first big money, and it was a lot of money," Stewart said.

She described the scale of the arrangement and the revenue it generated during the partnership's peak.

"I was clearing $65 million a year in royalties. Because we were selling close to $2 billion worth of merchandise," Stewart said.

Before the retail agreement, Stewart's catering operation generated slightly more than $1 million in revenue, but maintaining the business required considerable physical effort and staffing expenses.

"I was killing myself physically. And I had a big staff to pay and everything else. But that was still a big beginner business," Stewart said.

Stewart also explained that the economics of licensing arrangements have changed, with companies paying smaller royalty percentages than in earlier years.

"It's harder to do that nowadays because first of all, the royalties aren't the same," Stewart said.

She described the royalty structure she sees in the current market and the downward pressure on payments.

"Now it's three percent of wholesale and, you know, it gets lesser and lesser. Companies are paying such small royalties," Stewart said.

In a separate interview with PEOPLE at SoFi's Smart Money Social Club, Stewart discussed the financial principles she developed during more than five decades in business. She said practical experience and observing skilled professionals helped compensate for her limited formal finance education.

"Every day starts at zero, and you have to go from there," Stewart said.

She expanded on the importance of reviewing daily financial results and evaluating personal progress.

"If you're talking about money, talk about the end of the day and examine what you've done, what have you earned and what have you learned," Stewart said.

Stewart studied architectural history at Barnard College and completed a six-month course at the New York Institute of Finance. She acknowledged that the course had not been a particular strength, but described herself as someone who learns through experience and observation.

"probably did poorly," Stewart said of her performance in the finance course.

She credited her willingness to learn with helping her develop business knowledge outside a traditional business-school background.

"I'm a very good learner," Stewart said.

The Kmart royalties also helped support the development of Stewart's magazine and the wider enterprise surrounding her lifestyle brand. Her business career, however, has included substantial financial losses and a criminal case connected to insider trading.

Reflecting on one of her most difficult financial periods, Stewart described the scale of her losses.

"I fell in a hole, and I lost about $1 billion," Stewart said.

Stewart also addressed the legal troubles arising from the ImClone Systems insider-trading case. She was indicted in 2003 and convicted in 2004 of felony charges connected to the case, subsequently serving five months in prison.

Describing the financial consequences of the legal proceedings, Stewart said, "lawyers took me to the cleaners."

Despite those setbacks, Stewart expressed confidence about her continued involvement in business.

"I'm back. I'm pretty good," Stewart said.

Her public return to the New York Stock Exchange came in February 2026, when she rang the closing bell alongside Scotts Miracle-Gro CFO Mark Scheiwer as the company marked its 30th anniversary. Stewart had taken her own company public at the exchange in 1999 before her legal troubles led her to resign from its board.

Stewart also discussed the value of celebrity partnerships and the products she receives in exchange for appearances. She said compensation can take the form of merchandise rather than cash, including clothing supplied for fashion events.

"I get asked to go to a fashion show and I then get $40,000 worth of clothes," Stewart said.

She emphasized the value of such arrangements, which provide substantial merchandise in exchange for attending an event.

"That's a lot of money, $40,000, to dress me to go to the fashion show. Just to show up," Stewart said.

Stewart continues to expand her presence across television, social media, publishing and commercial campaigns. One recent project was a MAC Cosmetics campaign featuring strawberries and honey in her kitchen, a concept she discussed in connection with the 1986 film 9½ Weeks.

Asked whether the provocative campaign concept had originated with her, Stewart answered directly.

"Of course!" Stewart said.

She has also said that although other people assist with her social media accounts, many ideas appearing on her personal Instagram originate with her.