Martha Stewart sinks on Penney’s pullout

Shares of Martha Stewart’s company sank as much as 6.5 percent 💙yesterday after The Post exclusively reporteꦏd that the company’s controversial deal with JCPenney for home goods is coming to an end.

Penney CEO Mike Ullman has decided to ditch a line of Martha Stewart products amid disappointing sales and a year-and-a-half legal battle with Macy’s, which claims t💦he deal violates its own licensing pact with Stewart.

Penney didn’t directly respond to The Post’s report, saying only that it was awaiting a New Yo🌟rk judge’s decision on the Macy’s litigation.

“꧒J.C. Penney remains one of our many retail partners,” Martha Stewart Living Omnimedia said in a statement.

“Our ജ🐠agreement with them is in force, and we have no intention of ending it.”

Shares of MSL𝔍O yesterday closed at $2.32, down 14 cents, or 5.7 percent. Volume was 714,000 shares, more than six times the 🍌daily average.

Penney shares, meanwhile, gained 72 cents, or 5.3 percent, to close at $14.22 onꦡ three times the normal daily volume.

🌱Inked in December 2011 by then CEO Ron Johnson, Penney’s 10-year, $200 million licensing deal with MSLO has been a headache from the start.

In addition to legal hassles and sluggish sales, interim CEO Ullman has♎ told employees Stewart’s designs have been lackluster, insiders say.

Wall Streeters said Penney’s stock got a boost partly on word that Ullman has decided to meet with ෴investors next week at a retail conference hosted by Goldman Sachs.

“The bet is that iꦗf [Ullman] is calling a meeting, he might have something good to say,” said one Penney shareholder.