1-800-Flowers Q1 Results

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CHR

CHR

Design matters
Nov 28, 2002
8,951
8,442
113
Anaheim
www.avantegardens.com
State / Prov
CA
The numbers are out:

  • Net loss for the quarter $5.8M
  • Total revenues up 6.3%
  • Floral - revenues up 6.0 percent to $87.6
  • BloomNet - Revenues up 38 percent to $9.9 million
McCann also noted that the Company’s BloomNet wire service continued to build market share during the fiscal first quarter, growing revenues 38 percent through a combination of increased penetration of its expanded suite of products and services and by capturing a growing volume of the orders sent between florists. “We have built, what we believe is the highest quality network of florists in the industry and we are committed to helping them not just survive in a contracting marketplace, but to thrive.” McCann noted that BloomNet florists are now uniquely positioned to benefit from the Company’s industry-leading growth.
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Conference Call in 15 minutes. Registration required to listen in.

I expect BloomNet will be a strong focus of this call since it shows the largest increase in income on a percentage basis.

Note: So far, no mention of '9500' BloomNet members. ;)
 
BloomNet's numbers

CHR said:
The numbers are out:

  • Net loss for the quarter $5.8M
  • Total revenues up 6.3%
  • Floral - revenues up 6.0 percent to $87.6
  • BloomNet - Revenues up 38 percent to $9.9 million
Conference Call in 15 minutes. Registration required to listen in.

I expect BloomNet will be a strong focus of this call since it shows the largest increase in income on a percentage basis.

Note: So far, no mention of '9500' BloomNet members. ;)
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It shouldn't surprise anyone that BloomNet is posting a revenue. Afterall if you take the number of florists they actually have (versus the high number they would like us all to believe) and times that number by $300 for forcing their members to "buy" the Selection guide, it adds up to several million dollars. Too bad their revenue base isn't from adding new members but more by increasing their cost of business
 
spentflowers said:
It shouldn't surprise anyone that BloomNet is posting a revenue. Afterall if you take the number of florists they actually have (versus the high number they would like us all to believe) and times that number by $300 for forcing their members to "buy" the Selection guide, it adds up to several million dollars. Too bad their revenue base isn't from adding new members but more by increasing their cost of business
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Actually, I don't read the results that way at all. They seem to be taking business away from the other wire services and, of course, the local florist. I think that they have the momentum, the marketing savey and the drive to be THE wire service of the future--if they can just find a way to divorce themselves from the crummy little cheapy arrangements that they so dearly love.
 
Bigted said:
Actually, I don't read the results that way at all. They seem to be taking business away from the other wire services and, of course, the local florist. I think that they have the momentum, the marketing savey and the drive to be THE wire service of the future--if they can just find a way to divorce themselves from the crummy little cheapy arrangements that they so dearly love.
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I doubt if they can grow to become THE wire service since the man running the show use to be apart of the executive team at Teleflora. It's duplicating the same old same practices and business model of Teleflora. Even copied a registered slogan of Target ..."Expect More, PayLess" in their recent magazine ads. Unfortunately, Mark Nance doesn't have an original thought these days.
 
spentflowers said:
I doubt if they can grow to become THE wire service since the man running the show use to be apart of the executive team at Teleflora. It's duplicating the same old same practices and business model of Teleflora. Even copied a registered slogan of Target ..."Expect More, PayLess" in their recent magazine ads. Unfortunately, Mark Nance doesn't have an original thought these days.
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Well, I can tell you this. FTD is WAY more concerned about them than about Teleflora. Maybe I read it wrong, but to me, Teleflora is quietly losing steam.
 
Bigted said:
Well, I can tell you this. FTD is WAY more concerned about them than about Teleflora. Maybe I read it wrong, but to me, Teleflora is quietly losing steam.
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I think all of the wire servics better start paying attention. More and more florists are beginning to see the light and start sending F2F. the revenue postings really don't reflect membership increases as much as they do the cost of doing business with a wire service. Incremental dollars are added to the florist's statement each month and get paid without question because the florist either hasn't had time to really wade through the confusing bill or they don't understand it. Either way, membership numbers posted aren't always true numbers. Revenues might in reality reflect the beating they are giving their membership.
 
From The Tone

Bigted said:
Actually, I don't read the results that way at all. They seem to be taking business away from the other wire services and, of course, the local florist. I think that they have the momentum, the marketing savey and the drive to be THE wire service of the future--if they can just find a way to divorce themselves from the crummy little cheapy arrangements that they so dearly love.
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From the tone of your post BigTed, it seems your hoping 800flowers wins. What I don't understand is WHY?

800Flowers is the company that started all this ordergathering. 800flowers was the main force behind FTD being sold. 800flowers was the leader in direct ship products. 800flowers was the first to push nonfloral items on their website to consumer who came looking to buy flowers.

The only thing 800flowers wants to do with Bloomnet is get florists to give them a steady stream of money. The realized that FTD had a big advantage on them because florists were subsidizing FTD's bottom line by paying all those dues and fees. 800flowers wants florists to stop paying FTD and instead start paying them. In return florists will get nothing except promises which is all FTD gives florists.

The best thing that could happen with bloomnet is that it flops.
 
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sfox said:
From the tone of your post BigTed, it seems your hoping 800flowers wins. What I don't understand is WHY?
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Not hoping that at all. Just call em like I see em. We are not part of Bloomnet, I just think they have the momentum.

Like most people here, I'd like to see a world where the local florist can take back his (or her) business from the imposters and scammers. Unfortunately, I'm just not sure that's where we are headed.
 
Bigted said:
Actually, I don't read the results that way at all. They seem to be taking business away from the other wire services and, of course, the local florist. I think that they have the momentum, the marketing savey and the drive to be THE wire service of the future--if they can just find a way to divorce themselves from the crummy little cheapy arrangements that they so dearly love.
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I don't believe there is a Wire service of the future. The future has no need for one.
 
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Another way to look at the results

There is another way to look at 800flowers results. Those millions of dollars lost could result in them looking even harder at retail florists as a way of gaining profitability.

How.

First, by aiming even harder at the consumers that now shop at florists.

Second, by adding more incentives for florists to join bloomnet. These incentives would give florists some short term gains but give 800flowers long term revenue and profits.

800Flowers is the 800lb gorilla in florists backyard and the more money they lose the harder they will use their size to take away what florist have today.
 
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Chezbloom said:
I don't believe there is a Wire service of the future. The future has no need for one.
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From a sending perspective this is probably true. There are other sending options now and should be even more in the future.

The problem is that it's not only about sending, and there does not need to be a need for wire services in order for them to thrive. As long as order-gatherers can gather orders they need to get those orders filled. There will always be florists willing (even anxious!) to fill those orders.
 
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Mark Anderson said:
From a sending perspective this is probably true. There are other sending options now and should be even more in the future.

The problem is that it's not only about sending, and there does not need to be a need for wire services in order for them to thrive. As long as order-gatherers can gather orders they need to get those orders filled. There will always be florists willing (even anxious!) to fill those orders.
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I think there will always be a need for a wire service. At least in my foreseeable future.

The internet hasn't made them unnecessary at all in my world - too many crappy florists out there to be found too easily on the internet.

It seems Tom Meola had no problem for many years now not having a wire service - so eliminating wire services doesn't stop slime from growing in any way.
 
bloomz said:
I think there will always be a need for a wire service. At least in my foreseeable future.
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We are now WS free and happy about it. In the age of internet directories like locateaflowershop-dot-com and others for you to find a f2f shop, a business cc or debit card, and every cc clearinghouse on the planet vieing for your business giving you bargaining power, why on earth be a WS member?:hammer: Their stickers are still on my door to give customer confidence but that's as far as it goes.

Tim- North Port Floral
 
NPFloral said:
We are now WS free and happy about it. why on earth be a WS member?:hammer: Their stickers are still on my door to give customer confidence but that's as fart as it goes.

Tim- North Port Floral
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Tim, you have no need for the wire services but you keep their stickers on your door to give the customer confidence... so really you do have need for the wire services you just choose not to pay it?? If you really believed in what you were doing you would not need their stickers. I guess you can justify it as payback for all the years you paid to be a member but if that is the case than you are really not happy about it as you need the crutch.
 
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carol said:
Tim, you have no need for the wire services but you keep their stickers on your door to give the customer confidence... so really you do have need for the wire services you just choose not to pay it?? If you really believed in what you were doing you would not need their stickers. I guess you can justify it as payback for all the years you paid to be a member but if that is the case than you are really not happy about it as you need the crutch.
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I think you read too much into it Carol. I never said I *NEEDED* the signs, I just chose to leave them up. (Not to mention they are a pain in the azz to get off the glass!)

I cannot speak for consumer mentality. If they see a sign and feel good about opening the door. That's all I care about. Once inside I explain the benefits of F2F sending and they become educated, they know that they are getting their money's worth. They really do appreciate that and come back.

Tim - North Port Floral
 
It took me almost half a can of MessMaster to remove the old FTD circular sticker from our front window. It was a pain in the butt to remove. I think the customer might still equate those stickers with quality. They don't know, heck, even I did'nt know what was really going on with WS until I bought my own store. And I worked in lots of shops before opening one.
 
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