• This is a rush transcript from "Your World With Neil Cavuto," October 28, 2008. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: All right. Well, despite today's rally, times are generally tough, but Martha Stewart weathering the storm handily. Martha Stewart Living Omnimedia did cut its profit outlook for the year, due mainly to weakness in the publishing business. I think my parent company knows a thing or two about that.


    CAVUTO: But profits for Martha's merchandise, that was very strong. It more than doubled in the latest quarter, helped by deals with the likes of Emeril Lagasse, and Macy's, Wal-Mart.

    With us now, company founder Martha Stewart. And wouldn't you know she just brought some chachkas with her. That's so unusual.

    MARTHA STEWART, FOUNDER, MARTHA STEWART LIVING OMNIMEDIA: Well, more than chachkas. I brought you a ham.


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    CAVUTO: That is not surviving here. The guys are already dibs on it. but, guys, I am closest to it.


    CAVUTO: So, end of story.


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    CAVUTO: So, it's interesting. In tough times, I bet this stuff actually does better.

    STEWART: Well, it sells very well. I am on a book tour right now. So, I have been going into many cities with my newest book, which is "Martha Stewart's Cooking School."

    We have had a phenomenal turnout at the book signings, and people thanking me...

    CAVUTO: How many books have you written?

    STEWART: Well, we have published -- Martha Stewart Living has published, under my name, 66 books. And I personally have written, I think -- I think this is the 33rd, something like that, a lot books.


    CAVUTO: ... Stephen King every down moment?

    STEWART: Oh, up in the attic at night...

    CAVUTO: Right. Right.

    STEWART: ... with the oil burning, yes.

    But, no, this is a really good book. And it is apropos to the times, because it is refreshing your cooking skills. It is teaching you cooking skills, so that you can make, on your budget, a decent, delicious, nutritious meal.

    CAVUTO: Well, that -- one of your strengths has been appealing to people in all price points...

    STEWART: Yes.

    CAVUTO: ... from the Wal-Mart...


    STEWART: Yes.

    CAVUTO: ... and all the way up.

    How is that working out, because we're hearing, up the food chain, it's hurting?

    STEWART: It's working well.

    Well, right now, most of our product is sold at a wonderful store called Macy's. And, so, we have a huge -- we have about 4,000 (INAUDIBLE) at Macy's. Now, we are selling an awful lot there. And our sales are holding up. We're -- our product is the most registered for, for brides. And that is a pretty recession-proof business. They may cut the cost of their wedding, but you can't really the cost of the gifts so much.

    You know, people are still buying the...


    STEWART: ... gifts.

    CAVUTO: Watch out. I can be as cheap as the next guy. But...


    STEWART: Oh, really? And then...

    CAVUTO: They never have paper products on a wedding list, do they, a gift list?