Martha Stewart Living gives negative outlook

Martha Stewart Living Omnimedia reported its first quarterly loss Tuesday and warned of more bad news ahead, as the company suffered declines in broadcasting and Internet businesses as well as continued fallout from the investigation of its founder.

For the three months ending Dec. 31, the media and retailing company lost $2 million, or 3 cents per share, in contrast to a profit of $5.7 million, or 13 cents per share, in 2001.

The company warned of more difficulties ahead, saying it expects a first-quarter loss of 6 to 8 cents per share.

Retail: Former congressman joins Dillard’s board

Dillard’s Inc. department stores, which has been accused of discrimination against black shoppers, on Tuesday announced election of former Oklahoma congressman J.C. Watts to its board.

Watts, 45, was the only black Republican in Congress when he retired in January. He served in the House for eight years.

Dillard’s did not address accusations against the company in a news release. The chain has denied any racial profiling.

Last year, the U.S. Supreme Court refused to review a $1.2 million verdict against Dillard’s, which was accused in 1996 of keeping a black woman in Overland Park from claiming a cologne sample. In recent years, the Little Rock, Ark.-based chain settled discrimination complaints by Kansas and Missouri employees.

Food distributor: Fleming ousts CEO

Food distributor Fleming Cos., which has seen its stock price plunge, faces a federal investigation of its accounting practices and is cutting ties to its biggest customer, said Monday that Mark Hansen had resigned as chairman and chief executive after five years in the jobs.

Peter Willmott, a former Federal Express Corp. and Zenith Corp. executive who joined the Fleming board in December, will become interim chief executive and president. Former Kansas University Chancellor Archie Dykes, a venture capitalist and company director, was named chairman.

The company operates a merchandising facility in Topeka.