1-800-flowers Q1

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CHR

CHR

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

Sales up 21.6% (in part due to the acquisition of Fannie May)

Net loss for the first quarter was $7.4 million or ($0.11) per share compared with a loss of $6.6 million or ($0.10) per share in the prior year period.

McCann also noted that, during the fiscal first quarter, the Company continued to achieve strong growth in its BloomNet wire service business. "BloomNet grew its revenues almost 60 percent during the first quarter. Importantly, by leveraging its increasing scale, it increased its EBITDA contribution by more than 150 percent. This strong growth and profitability illustrates the enthusiastic response BloomNet's superior value proposition is receiving from florists throughout the country. We continue to focus our efforts in this area on developing and introducing a comprehensive suite of products and services designed to help our florists grow their businesses and enhance their profitability," he said.
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Wow - Bloomnet florist members helped increase profits in that division by 150%.
BloomNet Wire Service: Revenues increased 58.7 percent to $7.2 million compared with $4.5 million in the year ago period. Gross margin was 57.2 percent compared with 57.9 percent in the prior year period. Category EBITDA increased 152.9 percent to $1.7 million compared with $673,000 in last year's first quarter, reflecting the growth in florist membership and product and service offerings compared with the prior year.
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More than 1.3 million customers placed orders during the period of which 59.3 percent were repeat customers.
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Earnings call at 11 AM Eastern.
 
Eric S said:
59% were repeat customers.

Is that the going rate or does that seem a little low?
Click to expand...

Personally, if I had only a 59% repeat, I'd be out of business!
But then again, I don't have all those direct ship options available to me...and, I'm not a national/international company. Good question though - how does the 59% compare to other online gift retailers?

- H.
 
Yes I feel that number is really low and would be concerned if that was my business.

I think the filling stations are going to continue to cause problems for bloomnet and quality and design is (just like our own business) is one of the key's to retaining customers.

In the past six months I continue to hear more new customers looking for the alternitive to 800 and FTD.

The box factor is a total scam and they don't want that (I swear every new customer ask me that everyday "is that in a box or vase? Do I have to put it together?") The see what I get factor is also having an impact on their customers.

I can only see it continuing to get better for us and worse for them.
 
I don't really see how reporting 23% sales increase is really good for anyone but 800flowers...what am I missing here?

Who cares how many repeat customers you have as long as the bottom line is growing? There are 3 billion new ones waiting on the net.
 
McCann also noted that, during the fiscal first quarter, the Company continued to achieve strong growth in its BloomNet wire service business. "BloomNet grew its revenues almost 60 percent during the first quarter. Importantly, by leveraging its increasing scale, it increased its EBITDA contribution by more than 150 percent. This strong growth and profitability illustrates the enthusiastic response BloomNet's superior value proposition is receiving from florists throughout the country. We continue to focus our efforts in this area on developing and introducing a comprehensive suite of products and services designed to help our florists grow their businesses and enhance their profitability," he said.

Again florists become the "revenue stream" of profitability for the "wire" services.
 
I listened to the conference call recording (nice that you can pause to handle more pressing matters, like customers) and want to share a few tidbits.

McCann expects non-floral items to be 2/3 of sales in the next quarter.

Year-over-Year sales (excluding the acquisitions) were up around 10% on the quarter.

He said their rewards program was well received and that it was a great opportunity for 1-800 to introduce their non-floral brands to current buyers. 1-800's non-floral products have margins at around 45% vs floral at around 35%. No wonder they are pushing consumers to buy something besides flowers.

*And they are backing the coalition that wants us all to pony up $50M to pay for a Flower Market Order through the USDA?*

Mention was made as to how 1-800 was helping its Bloomnet members compete with grocery stores - which sorta flies in the face of posts elsewhere on this board.

He closed the call by telling everyone it's not too late to send a Halloween gift - and then plugged chocolates, cookies and popcorn. NO mention of flowers at all.
 
1-800 Flowers: Executive Salaries Bloom While the Stock Whithers

...the numbers included in the proxy statement show that $100 invested in 1-800 Flowers stock in July 2001 was worth $38.88 at the end of June...

http://internet.seekingalpha.com/article/19501

.
 
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