News Column

1-800-FLOWERS.COM, Inc. Reports Results For Continuing Operations For Its Fiscal 2014 Third Quarter

May 17, 2014



By a News Reporter-Staff News Editor at Marketing Weekly News -- 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), the world's leading florist and gift shop, reported revenues from continuing operations of $179.6 million for its fiscal 2014 third quarter, ended March 30, 2014, compared with revenues from continuing operations of $191.6 million in the prior year period. The Company said the 6.3 percent decline was primarily driven by the shift of the Easter holiday into its fiscal fourth quarter, compared with the prior year when the holiday fell in the Company's fiscal third quarter, as well as the impact of severe winter weather beginning in January and culminating with the winter storm that effected much of the country at the key Valentine holiday.

Gross profit margin for the third quarter was 41.0 percent, compared with 42.0 percent in the prior year period, reflecting both product mix and higher customer credits associated with the severe weather during the Valentine holiday. Operating expenses as a percent of revenue were 42.5 percent compared with 39.5 percent in the prior year period, reflecting the lower revenues during the quarter as well as increased marketing spending during the Valentine holiday period.

As a result of the aforementioned factors, EBITDA, excluding stock-based compensation, was $3.3 million, compared with $10.7 million in the prior year period. Net loss from continuing operations attributable to 1-800-FLOWERS.COM, Inc. was $1.4 million, or ($0.02) per share, compared with income of $3.1 million, or $0.05 per diluted share in the prior year period.

Jim McCann, CEO of 1-800-FLOWERS.COM, said, "The results of our fiscal third quarter reflect the shift of the Easter holiday into our fourth quarter this year, compared with last year when the holiday was in our fiscal third quarter, as well as the impact of the severe winter weather experienced across much of the country beginning in January and culminating in the storm that hit on February 13th, thereby disrupting the key Valentine holiday. Regarding the Easter shift, we anticipate capturing all of the top and bottom-line benefits associated with the holiday across all three of our business segments during our current fiscal fourth quarter."

McCann said that the Company was proud of its efforts to help customers deliver smiles during the Valentine holiday, despite the challenging weather. "Our proactive planning for severe weather around the Valentine holiday, which we dubbed 'Operation Love Storm,' enabled us to utilize our unique distribution platform, particularly our BloomNet network of professional florists, to deliver millions of smiles for our customers throughout the country, including regions hit hardest by the snow and ice storms.

"In addition, throughout the holiday period, our dedicated customer service associates - including our home agents and our internal social-media communications teams - did an exemplary job of responding to each and every customer inquiry and issue we received. As a result, we were heartened by the post-holiday accolades we received in the blogosphere for our open and transparent communications policy on Twitter and Facebook. All of these efforts reflect our many years of experience as the world's leading florist and gift shop as well as our unparalleled passion for providing great service and delivering smiles. We believe this focus positions us well to deliver solid year-over-year growth during our current fiscal fourth quarter which features the spring gifting occasions including Easter, Administrative Professionals Week, Mother's Day, Graduation and Wedding season and Father's Day."

During the fiscal third quarter, the Company attracted 675,000 new customers. Approximately 1.6 million customers placed orders during the quarter, of whom 58.4 percent were repeat customers. This reflects the Company's successful efforts to engage with its customers with truly original product designs and relevant marketing programs that help deepen its relationships as their trusted Florist and Gift Shop for all of their celebratory occasions.

Keywords for this news article include: Marketing, Advertising, 1-800-FLOWERS.COM Inc..

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Source: Marketing Weekly News


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