1-800-Flowers Q2 Numbers Out

[CHR]

1-800-Flowers released earnings for the 2nd quarter this morning.

1-800-FLOWERS.COM Consumer Floral: During the fiscal 2010 second quarter, revenues in this category were $85.9 million compared with $90.1 million in the prior year period. Gross margin for the quarter increased 120 basis points to 38.3 compared with 37.1 in last year’s second quarter. Category contribution margin was $7.6 million compared with $8.0 million in the prior year period.

BloomNet Wire Service: Revenues were $14.8 million, compared with $15.1 million in the prior year period reflecting lower wholesale product sales. Gross margin increased 20 basis points to 58.1 percent compared with 57.9 percent in the prior year period. Category contribution margin was $4.7 million compared with $4.8 million in the prior year period.

Gourmet Food and Gift Baskets: Revenues were $138.2 million, compared with $147.8 million, reflecting reduced wholesale orders from mass market customers. Gross margin increased 230 basis points to 42.1 percent compared with 39.8 percent, primarily reflecting product mix and manufacturing efficiencies. Category contribution margin increased 7 percent to $28.6 million compared with $26.7 million in the prior year period.

Projections for the year:

The Company now anticipates total revenues for fiscal 2010 will be down approximately five-to-ten percent and EBITDA and EPS are expected to be flat, compared with the prior year.

Sales Volume:

During the fiscal second quarter, the Company attracted 656,000 new customers, of whom 78 percent, or 512,000, came to the Company through its online channels. Approximately 1.7 million customers placed orders during the quarter, of which 60 percent were repeat customers.

Compared to Q2 of 2009:

During Q2 of fiscal 2009, 1-800-Flowers attracted approximately 1 million new customers, with 72%, or more than 715,000, coming in through online channels, the company says. Approximately 2.4 million customers placed orders during the quarter, of which 57% were repeat customers.

That's more than a 25% decrease in orders.

Conference call at 11 a.m. Eastern, 8 a.m. Pacific.

 

[CHR]

Consumer Floral Sales over the last 3 years during Q2
Oct - Dec 2007 - $114 M
Oct - Dec 2008 - $97 M (number pulled from last year's Q2)
Oct - Dec 2009 - $86 M

Gift and Gourmet Sales during the same period
2007 - $111 M
2008 - $142 M
2009 - $138 M

 

[BOSS]

During the fiscal second quarter, the Company attracted 656,000 new customers, of whom 78 percent, or 512,000, came to the Company through its online channels.

Meaning: They took this many customers AWAY from traditional mom and pop slob retail florists and funneled the orders back to them discounted at 32%...

 

[pnyflr]

So where is a good source to find numbers on floral sales from all channels? I want to know concrete numbers that show whether our overall market size is shrinking or if it is just being bifracated (sp?) through lots of channels.

 

[Eric S]

I don't think we need to look far to see that the market is shrinking.