1-800-Flowers posts higher Q3 revenue, profit
Florist 1-800-Flowers.com Inc. said revenue grew 18.8 percent to $213.8 million for its fiscal third quarter ended April 1.
Net income for the quarter increased 168.4 percent to $1.1 million, or $0.02 per share, compared with a loss of $1.5 million, or a loss of $0.02 per share, in the prior year.
The Carle Place, NY-based floral and gift merchant's results reflect the strength of a new merchandising strategy that features an increasing number of signature gift items in the company's consumer floral business.
In addition, e-commerce revenue grew by approximately 10 percent, with more than 2 million e-commerce customers placing orders during the third quarter. Of those, 59 percent were repeat customers.
Sales for the firm's BloomNet Wire Service increased 38.9 percent to $12.7 million. During the quarter, the company introduced several new products and services designed to help its BloomNet florists boost their revenue growth and profitability, including Web hosting and a point-of-sale store management system.
Revenue in the gourmet food and gift basket business grew 151 percent to $35.6 million, benefiting from continued double-digit growth in the Cheryl & Co. and The Popcorn Factory brands as well as an incremental contribution of $17.3 million from the Fannie May Confections business acquired in May last year.
In the home and children's group category, revenue decline 7.1 percent to $26.3 million. The company continued to take steps to improve the performance of this business, including improving the look and feel of the catalogs and revising circulation plans to focus on the category's existing customer base. As a result, the company said it has begun to see an improvement in customer response rates and bottom-line performance.