Under Pressure, Stewart Shifts Company's Focus To follow Martha Stewart, even briefly, is a test of endurance. On a recent afternoon, Ms. Stewart wrapped up posing for a photo shoot for Martha Stewart Halloween magazine at her company's Manhattan headquarters, as makeup artists briskly wiped glitter off her cheeks and disassembled her fairy-godmother bouffant. She hopped off her makeup chair and sprinted into the neighboring studio to check on a Martha Stewart Brides cover photo shoot featuring $50 million worth of engagement rings. Then, with two publicists struggling in her wake, she dashed down hallways filled with the scent of freshly baked chocolate gingerbread cookies to work in a conference room before heading to a talk at the 92nd Street Y. Ms. Stewart's schedule may be as busy as ever, but Wall Street wants to know when all of this baking, publishing and public speaking will turn into profits for her company, Martha Stewart Living Omnimedia. In response, the company is redesigning its Web site and flagship magazine, and Ms. Stewart, 71, says she is "trying to evolve." While tabloids and television shows have focused lately on Ms. Stewart's online dating, analysts have been more concerned with the company's latest earnings report, which shows that it lost $3 million in the first quarter. Those losses emerged from across the company, including the flagship magazine, Martha Stewart Living - which has had a 35 percent decline in newsstand sales so far this year - and sheets and glassware sold at Macy's. The company's merchandise division remains tied up in a lawsuit after Macy's sued it, along with J. C. Penney, over whether Penney's could also sell her housewares. On top of all that, the company has not had a chief executive since February. Taking on the challenge, Ms. Stewart is returning to what she knows best: design. On Monday, the company is releasing on iPad its redesigned July/August issue of Martha Stewart Living, which will be on newsstands next week. The redesign features pared-down presentations of recipes, like how to grill a fish, and shorter instructive features, like how to make friendship bracelets. The magazine's editor in chief, Pilar Guzman, said "the days of 1,000 word front-of-book stories are over." By month's end, the company will overhaul its Web site to feature shorter videos on crafting and cooking topics. Executives are hoping that these early steps will help drive advertising revenue to Martha Stewart Living magazine and the company's Web site. "We understand that people are coming for short, consumable bites of information," said Joseph Lagani, the company's chief revenue officer. People are not spending an hour with you. They're there to get something. The redesign represents a large shift for Ms. Stewart, who built her reputation and her company largely on the strength of her cut-no-corners approach to cooking and crafts. "I don't want to retire," Ms. Stewart said as she sat in a conference room framed by views of the Hudson River. We're trying to help figure it out. I don't think it's anything to run away from. I'm not banging my head against a stone wall here. In part, the redesign is an attempt to hang on to the magazine's readers and artisans ages 18 to 34 who have become loyal fans. And like many publishers, the company is betting that video can help solve the online advertising riddle. "That approach of putting cooking techniques near our recipes in video form has done really well," Mr. Lagani said, "and many of our advertisers want to be part of that." Like many publishing executives, Ms. Stewart concedes she thought her magazines would have experienced more digital growth by now. "Publishing is a serious conundrum - advertisers don't know what they're doing," she said, but she remains optimistic about digital publishing. "It's very profitable to print digitally," she said, adding that she believes that readers will embrace online editions. Ms. Stewart returned to her company's board in 2011 after a five-year ban from serving on a board or as an executive of a publicly traded company. Since then, her company has been scaling back in the hopes of returning to profitability. In early 2012, the company cut $12.5 million in broadcasting costs by not renewing its daily programming deal with the Hallmark Channel. It also broke its lease on its television production studio and ended its live audience for "The Martha Stewart Show." The company also announced that a new weekly show, "Martha Stewart's Cooking School," would be distributed on public television. In November, the company's chief executive, Lisa Gersh, announced she planned to cut back two of its four magazines and lay off about 70 employees. In December, Ms. Gersh, after less than one year on the job, said she would step down so the company could find a chief to focus on finding more money in merchandising. The board is still looking for her replacement. "It's going to be hard to get your arms around the next phase of the company until senior management is in place," said David Bank, an equity research analyst with RBC Capital Markets. They're doing a good job of treading water until they're ready to do that. But it's not that interesting to Wall Street. Merchandising revenue was 30 percent of total revenue for the company in the first quarter of 2013 (publishing made up 65 percent), a rise from 27 percent in the first quarter of 2012. Mr. Bank thinks that because the company's standards remain so high for all of its products, from its blueberry muffin recipes to Ms. Stewart's new MarthaPantry line at J. C. Penney, the company has potential to expand its merchandising business abroad. "The underlying quality of the products tends to be marketable outside of people who know about Martha," Mr. Bank said. She will be able to develop scale in the international market just based on quality. But the company still doesn't know if J. C. Penney will be part of its merchandising future. "It's awful," Ms. Stewart said about the lawsuit. We're waiting for a decision.