1-800-flowers Posts Q3 2011 Results

[CHR]

The numbers are out this morning.

Consumer Floral:

revenues in this category increased 5.2 percent to $100.3 million compared with $95.3 million in the prior year period. This was driven by strong year-over-year revenue growth during the Valentine holiday period despite the Monday placement of the holiday.

I couldn't spot a mention of the number of orders filled. This leads me to believe the volume was flat or lower and the increase came from higher average sales per customer. They cut promotion of the 'free shipping' offers this year compared to 2010.

Bloomnet:

Revenues increased 17.3 percent to $20.8 million, compared with $17.7 million in the prior year period. This was driven primarily by growing revenues associated with increased shop-to-shop order volume.

My guess is that the increase was primarily due to From You Flowers moving its orders over from TF. Are shops experiencing increases in orders coming from other brick and mortar stores?

Gourmet Food and Gift Baskets:

Revenues were $41.9 million, compared with $42.6 million.

They attribute the decrease primarily due to Easter being later in April.

Bottom line:

Net loss for the quarter improved $3.2 million to $2.7 million, or ($0.04) per share, compared with a net loss from continuing operations of $5.9 million, or ($0.09) per share, in the prior year period. Total net loss for the prior year period was $7.3 million or ($0.11) per share.

Comparing consumer floral sales from the first nine months of this fiscal year to the same period last year, overall revenues (total sales) were down 1.5%.

In the press release, McCann continues to remain cautious about future sales due to the current condition of the economy.

Conference call at 11 AM Eastern today.

 

[CHR]

Found the info on order volume:

from 2010: (source here)

During the fiscal third quarter, the Company said approximately 1.6 million e-commerce customers placed orders of whom approximately 60 percent were repeat customers. This reflects the strength of the 1-800-FLOWERS.COM brand and its expanded Gifts businesses, as well as the Company’s ongoing focus on deepening the relationship with its existing customers as their trusted source for gifts and services for all of their celebratory occasions.

from 2011:

During the fiscal second quarter, the Company attracted 629,000 new customers, of whom 82 percent, or 518,000, came to the Company through its online channels. Approximately 1.5 million customers placed orders during the quarter, of whom 58 percent were repeat customers. This reflects the Company’s successful efforts to engage with its customers and deepen its relationships as their trusted Florist and Gift Shop for all of their celebratory occasions.

That's roughly 100,000 fewer orders than last year - so the increase in sales was primarily due to a higher average order value.

(Note: the 2011 report says FY 2nd quarter, but the quote came straight from today's numbers release, so it should have said 'fiscal third quarter'.)

Definitely should be a concern for both the company and investors.

 

[bootcampguy]

......My guess is that the increase was primarily due to From You Flowers moving its orders over from TF. Are shops experiencing increases in orders coming from other brick and mortar stores?

I spoken with many who have seen big spike in VD orders as a result of From you switching (they switched Jan 17th). I'm not bloomnet, so none here. Good friend said order volume was up 20% because of From You. He was close.

 

[anytimeflowers]

Off subject slightly, but I'm musing while taking a coffee break.

Now that TF is free of FU, and once they get past the shock of not having that income, do you suppose they will experience the same sort of "freedom and relief" that florists who quit the wire services feel after their first sane holiday? Could start opening some eyes.

 

[bootcampguy]

Off subject slightly, but I'm musing while taking a coffee break.

Now that TF is free of FU, and once they get past the shock of not having that income, do you suppose they will experience the same sort of "freedom and relief" that florists who quit the wire services feel after their first sane holiday? Could start opening some eyes.

You are right in one area, like Boss says, they are the most florists friendly out there (sorta, kinda, maybe).........their girlfriend run off with another man. If I owned, Tele, I would launch a huge campaign, not called saving the florists, but "growing with the florists" and I would, well you guys have all the ideas. They need a "damascus road "floral" conversion".........

 

[Simon Says]

I keep a track of the Teleflora Dove transmission sequence numbers and in a YTD comparision 2010 vs. 2011, Teleflora have cycled through approx. 10% more Dove transmissions this year, 2011. These transmissions cover orders, inquiries, replies, TF issued messages etc. However, in 2011 vs. 2010, Teleflora have requested all florists make delivery confirmations whereas, in roughly the first 15 weeks of 2010, few florists were giving delivery confirmations.

IF an approximate 80% - my estimate, which could be good or bad or anywhere in between - of all Dove transmissions were for orders in 2010 while in 2011 all Dove orders had only a 66% delivery confirmation rate through Dove of all Dove orders, this would mean that Dove orders had actually collapsed in 2011 vs. 2010 from the 80% figure of Dove transmissions in 2010, which is but an estimate, to only around 50-55% of the 2011 Dove transmission level. And, the higher the delivery confirmation %, the lower the % (and actual number) of other transmissions, including orders.

I recognise that all manner of issues effect the above but, look at it this way: IF in 2011 Teleflora/florist-to-florist order volume was the same this year as in 2010 and there is now the "required" delivery confirmation, they would have cycled through roughly 66% more Dove transmission sequences and not the actual approx 10%. Teleflora must be bleeding.

PS: I also realise volume does not equal value but....

 

[ptdeschler]

Interesting analysis and probably pretty accurate. My mind works in strange ways - if Teleflora is loosing so many members, why doesn't the directory get smaller? Bigger print?? Back to the 1800 flowers analysis, the big questions is how long can they continue to lose money without declaring bankruptcy.

 

[BOSS]

Now that TF is free of FU, and once they get past the shock of not having that income,

There's not much shock factor here, Teleflora booted FromYou out for non-payment, so they didn't have the income anyway, at least not in cash, probably showed on the books (private) and will now be moved into the loss column, at least until they get some of it in court, which they may never get.

800Flowers can run a long time without having to declare bankruptcy, much of their stock is held by the family for one thing, also they can be downgraded, delisted etc, leaving the investors empty handed and remain in business.