1-800-Flowers Q3

[CHR]

The numbers are out and once again the florists (via Bloomnet) save the day and improve 1-800-Flowers' bottom line. Without income from florist services, 1-800's earnings would likely have been flat or down.

Key facts and figures:

McCann noted that the Company’s BloomNet Wire Service continued to grow at a double digit pace during the quarter, with revenue increasing approximately 21 percent to $15.4 million and category contribution margin increasing 45 percent to $5.6 million.

Consumer Sales - Floral Division

During the third quarter, revenues increased approximately 1 percent to $141.0 million, compared with $140.1 million in the prior year period.

The combination of the lower than anticipated sales growth and slightly lower gross profit margin, reflecting the difficult retail environment, resulted in a decline in category contribution margin of $1.9 million to $17.2 million, compared with $19.1 million in the prior year period.

Bloomnet

Revenues increased 20.9 percent, or $2.7 million, to $15.4 million compared with $12.7 million in the year ago period.

Gourmet Foods and Gift Baskets

Revenues increased 11.4 percent to $39.7 million compared with $35.6 million in the prior year period. Gross profit margin increased 270 basis points to 45.9 percent, compared with 43.2 percent in the year ago period, primarily related to product mix.

Home and Children's Gifts

Revenues for the quarter declined 7.3 percent to $24.6 million, reflecting management’s planned reduction in marketing as it focuses on improving profitability in the category, as well as the impact on consumer demand related to the continued weakness in the housing market.

Having Easter in the quarter should have improved sales more. On that, the company says:

The Company noted that, while total sales benefited from the shift of the Easter holiday into its fiscal third quarter, compared with the prior year when it took place in its fiscal fourth quarter, revenues associated with Easter were impacted by inclement weather throughout much of the country and the early date placement, which reduced consumer focus on the holiday.

So clearly, flower sales are flat/down (factoring in inflation), food & gourmet are growing, gift items are down and florists' services contribute the most to the bottom line dollar-for-dollar.

Conference call at 11 AM Eastern (listen in via 1800flower.com).

Note: FTD has yet to indicate when they'll announce earnings. They're usually a day before or after 1800. The delay in announcing does not bode well...

 

[jamese]

The Bloom New Sector has been increasing here inFl. as sales are still down/to flat over all. Many florist are joing, to increase their ability to sell through standing order and such. Are they in for a real surprise!
Thanks for the update Cathy. See you in Chicago!
Also belated good wishes on your birthday!
Eddie

 

[CHR]

Thanks! Not sure I'll make Chicago. We have two inductees from here, one candidate being evaluated and one Regional board member. Somebody has to be in the store to help customers. :>

Just in case anyone missed the headline about 1-800-Flowers from CNN:
1-800-Flowers.com 3rd-quarter profit triples partly on BloomNet wire service business

 

[jamese]

Congrat's on your inductees, and candidate.
I wish them well, let me know if they need anything there.
E P

 

[Kristine]

Just in case anyone missed the headline about 1-800-Flowers from CNN:
1-800-Flowers.com 3rd-quarter profit triples partly on BloomNet wire service business

Hey they are just follow along the ftd model. and the sheep are letting them. go figure.

 

[fairfield]

1-800-Flowers.com 3rd-quarter profit triples partly on BloomNet wire service business

Aren't they the least expensive major wire service? I know a few florists signed up because of the low cost and that was 800's pitch to me when they came-a-knockin'.

I wonder when they'll start increasing their contribution margin from florists? Will they hold off until the next holiday season?

 

[Bigted]

Just remember these words "There is no free lunch"

I am not an 800 member--but I know that they have a problem with keeping the average order up, and, eventually they will be almost identical to the other guys. It's the nature of the beast.