800 Flowers 2Q
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Here's info from http://home.businesswire.com/portal...d=news_view&newsId=20070124005478&newsLang=en
1-800-FLOWERS.COM® Reports Strong Earnings Growth for Its Fiscal 2007 Second Quarter
* Net income (GAAP) for the quarter increased 63.7 percent to $16.9 million, or $0.26 per share, compared with $10.3 million, or $0.16 per share, in the prior year period. Pro forma EPS*, excluding the effect of stock-based compensation, was $17.6 million, or $0.27 per share. (*A reconciliation of EBITDA and pro forma EPS to GAAP net income and GAAP net income per common share, respectively, is included as part of the attached tables.)
* Company achieved a 54 percent increase in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization*) to $33.8 million, reflecting the combination of revenue growth, increased gross profit margin and enhanced operating expense leverage.
* Total revenues for the quarter grew 18.7 percent to $329.9 million, compared with $277.8 million in the prior year period, driven by double-digit growth in the Company’s key Consumer Floral, BloomNet Wire Service and Gourmet Food and Gift Baskets categories.
CARLE PLACE, N.Y.--(BUSINESS WIRE)--1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), the world’s leading florist and a provider of specialty gifts for all occasions, today reported record revenues of $329.9 million for its fiscal second quarter ended December 31, 2006, representing an increase of 18.7 percent, or $52.0 million, compared with revenues of $277.8 million in the prior-year period. Revenue growth for the quarter was driven by double-digit growth in the Company’s key Consumer Floral, BloomNet Wire Service and Gourmet Food & Gift Basket business categories and included the contribution from Fannie May Confections Brands, which was acquired in May 2006. This revenue growth was achieved despite lower year-over-year sales in its Home & Children’s Gifts category reflecting the highly competitive nature of this category during the holiday period.
During the fiscal second quarter, the Company improved its operating expense ratio (excluding depreciation and amortization) by 130 basis points to 35.8 percent compared with the prior year period. This reflects management’s focus on leveraging its operating platform. Gross margin for the quarter also improved, increasing 110 basis points to 46.1 percent compared with last year’s fiscal second quarter. Combined with the revenue growth in the quarter, these factors resulted in an EBITDA improvement of $11.8 million, or 54 percent, to $33.8 million compared with $22 million in the prior year period. Net income (GAAP) for the quarter increased 63.7 percent to $16.9 million, or $0.26 per share, compared with $10.3 million, or $0.16 per share, in the prior year period. Pro forma EPS, excluding the effect of stock-based compensation, was $17.6 million, or $0.27 per share. (*A reconciliation of EBITDA and pro forma EPS to GAAP net income is included as part of the attached tables.)
Jim McCann, CEO of 1-800-FLOWERS.COM, said, “We are very pleased with our fiscal second quarter results, particularly the increase in gross margin and the continued improvement in our operating expense ratio. These factors enabled us to grow EBITDA 54 percent, or nearly $12 million, to $34 million and improve EPS more than 60 percent to $0.26 per share. Importantly, we achieved these results despite the highly competitive retail environment during the holiday period.”
McCann noted that the Company achieved double-digit revenue growth and improved profit contribution in its Consumer Floral, BloomNet Wire Service and Gourmet Food and Gift Basket businesses. In addition, the Company achieved increased leverage from its enterprise-wide business process improvement initiatives. “Our positive results in these areas more than offset the weaker performance we saw in our Home and Children’s Gifts business during the period. This illustrates the strength of our business model, particularly our focus on growing businesses that can best leverage our operating platform and our collection of unique assets – including our database of more than 25 million customers, our brand strength and our extensive online and offline marketing programs.”
McCann said the Company has taken proactive steps to address the performance of its Home and Children’s Gifts category. “We successfully managed inventories during the quarter in response to the lower demand thereby minimizing any impact on gross margins and working capital requirements going forward into the second half of FY07. In addition, we have implemented a management change and initiated a comprehensive review of all operations at this division as we develop our go-forward plans.”
In terms of its key customer metrics, the Company said more than 2.6 million e-commerce customers placed orders during the fiscal second quarter of which 53 percent were repeat customers. This reflects the Company’s ongoing focus on deepening the relationship with its existing customers through its expanded gift offers as well as services such as its Fresh Rewards loyalty program, the first such program in the floral category. During the quarter, the Company attracted 1.2 million new customers of which 63 percent, or 780,000, came to the Company through its online channels. “Customers continue to be attracted by the strength of our brands, as well as our expanded offering of products and services that help them connect with the important people in their lives,” said McCann.
CATEGORY RESULTS:
FLORAL:
* 1-800-FLOWERS.COM Consumer Floral: During the fiscal 2007 second quarter, revenues in this category increased 10.9 percent to $114.6 million compared to $103.3 million in the prior year period. Gross margin for the quarter increased 160 basis points to 39.7 percent compared with 38.1 percent in last year’s second quarter. Reflecting strong revenue and margin growth and improved operating leverage, Category EBITDA improved 43 percent to $13.3 million compared with $9.3 million in the prior year period. The Company defines Category EBITDA as earnings before interest, taxes, depreciation and amortization and before allocation of corporate overhead expenses.
* BloomNet Wire Service: Revenues increased 45.5 percent to $9.6 million compared with $6.6 million in the year ago period. Gross margin increased 710 basis points to 59.9 percent compared with 52.8 percent in the prior year period. Category EBITDA increased 114 percent to $3.3 million compared with $1.5 in last year’s second quarter, reflecting the growth in florist membership and product and service offerings compared with the prior year.
SPECIALTY BRANDS:
* Gourmet Food and Gift Baskets: Revenues increased 74.6 percent to $108.9 million compared with $62.4 million in the prior year period. Gross margin increased 90 basis points to 48.4 percent compared with 47.5 percent in the year ago first quarter. Category EBITDA increased 139 percent to $25.3 million compared with $10.6 million in the prior year period. Results in this category reflect revenue contribution of $42 million from the Fannie May Confections Brands business which was acquired in May 2006.
* Home and Children’s Gifts: Revenues declined 7.7 percent to $98.0 million compared with $106.2 million in the prior year period. Gross margin was 48.8 percent, down 50 basis points, compared with 49.3 percent in the same period last year. Category EBITDA was down 65.8 percent to $3.8 million compared with $11.2 million in the prior year period. The category EBITDA reflects the impact of lower revenues and gross margin as well as increased marketing costs associated with efforts to expand the category.
Company Guidance:
The Company reiterated its guidance for growth of more than 100 percent in EBITDA and EPS reflecting its stated focus on achieving continued improvements in gross margin and operating leverage. Based on the lower revenues from its Home and Children’s Gifts category, the Company said it anticipates total revenue growth for fiscal 2007 at the low end of its previous guidance range of approximately 17-to-20 percent. Regarding its current fiscal third quarter, which includes the Valentine holiday; the Company expects the period will represent approximately 22-to-24 percent of full-year revenues.
Definitions:
Pro Forma EPS: To supplement its consolidated financial statements presented in accordance with GAAP, the Company has presented pro forma EPS. The Company defines pro forma EPS as GAAP net income per common share excluding stock-based compensation expense, net of the related tax effect, as calculated under FAS No. 123R. The Company believes pro forma EPS provide a meaningful measure of year-to-year period comparative performance; however, its use and corresponding per share results do not lessen the importance of GAAP net income per common share.
EBITDA: Net income before interest, taxes, depreciation and amortization. The Company presents EBITDA because it considers such information a meaningful supplemental measure of its performance and believes it is frequently used by the investment community in the evaluation of companies with comparable market capitalization. The Company also uses EBITDA as one of the factors used to determine the total amount of bonuses available to be awarded to executive officers and other employees. The Company’s credit agreement uses EBITDA (with additional adjustments) to measure compliance with covenants such as interest coverage and debt incurrence. EBITDA is also used by the Company to evaluate and price potential acquisition candidates. EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are: (a) EBITDA does not reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance.
About 1-800-FLOWERS.COM®
For more than 30 years, 1-800-FLOWERS.COM Inc. – “Your Florist of Choicesm” – has been providing customers around the world with the freshest flowers and finest selection of plants, gift baskets, gourmet foods, confections and plush stuffed animals perfect for every occasion. 1-800-FLOWERS.COM® offers the best of both worlds: exquisite, florist-designed arrangements individually created by some of the nation’s top floral artists and hand-delivered the same day, and spectacular flowers shipped overnight “Fresh From Our Growerssm.” Customers can “call, click or come in” to shop 1-800-FLOWERS.COM twenty four hours a day, 7 days a week at 1-800-356-9377 or www.1800flowers.com. Sales and Service Specialists are available 24/7, and fast and reliable delivery is offered same day, any day. As always, 100 percent satisfaction and freshness are guaranteed. The 1-800-FLOWERS.COM collection of brands also includes home decor and children’s gifts from Plow & Hearth® (1-800-627-1712 or www.plowandhearth.com), Problem Solvers® (www.problemsolvers.com), Wind & Weather® (www.windandweather.com), Madison Place® (www.madisonplace.com), HearthSong® (www.hearthsong.com) and Magic Cabin® (www.magiccabin.com); gourmet gifts including popcorn and specialty treats from The Popcorn Factory® (1-800-541-2676 or www.thepopcornfactory.com); exceptional cookies and baked gifts from Cheryl&Co.® (1-800-443-8124 or www.cherylandco.com); premium chocolates and confections from Fannie May Confections Brands® (www.fanniemay.com and www.harrylondon.com); gourmet foods from GreatFood.com® (www.greatfood.com); wine gifts from Ambrosia.com (www.ambrosia.com); gift baskets from 1-800-BASKETS.COM® (www.1800baskets.com) and the BloomNet® international floral wire service, which provides quality products and diverse services to a select network of florists. 1-800-FLOWERS.COM, Inc. stock is traded on the NASDAQ market under ticker symbol FLWS.
Special Note Regarding Forward-Looking Statements:
The statements in this press release regarding current and future expectations involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to: the Company’s ability to achieve its revenue and profitability growth guidance for fiscal 2007; its ability to improve operating leverage and enhance its profit margins; its ability to manage the increased seasonality of its businesses; its ability to effectively integrate and grow its acquired companies; its ability to cost effectively acquire and retain customers; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to cost efficiently manage inventories; and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. For a more detailed description of these and other risk factors, please refer to the Company’s SEC filings including the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company expressly disclaims any intent or obligation to update any of the forward looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company.
Conference Call:
The Company will conduct a conference call to discuss the attached financial results today, Wednesday, January 24, 2007 at 11:00 a.m. ET. The call will be “web cast” live via the Internet and can be accessed from the Investor Relations section of the 1-800-FLOWERS.COM web site. An indexed recording of the call will be posted on the Investor Relations section of the Company’s web site within 2 hours of the call’s completion. A replay of the call can be accessed via telephone for twenty four hours beginning at 1:00 p.m. (ET) on 1/24/07 at: 1-888-286-8010 (domestic) or 1-617-801-6888 (international). Enter pass code #18237664.
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Here's info from http://home.businesswire.com/portal...d=news_view&newsId=20070124005478&newsLang=en
1-800-FLOWERS.COM® Reports Strong Earnings Growth for Its Fiscal 2007 Second Quarter
* Net income (GAAP) for the quarter increased 63.7 percent to $16.9 million, or $0.26 per share, compared with $10.3 million, or $0.16 per share, in the prior year period. Pro forma EPS*, excluding the effect of stock-based compensation, was $17.6 million, or $0.27 per share. (*A reconciliation of EBITDA and pro forma EPS to GAAP net income and GAAP net income per common share, respectively, is included as part of the attached tables.)
* Company achieved a 54 percent increase in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization*) to $33.8 million, reflecting the combination of revenue growth, increased gross profit margin and enhanced operating expense leverage.
* Total revenues for the quarter grew 18.7 percent to $329.9 million, compared with $277.8 million in the prior year period, driven by double-digit growth in the Company’s key Consumer Floral, BloomNet Wire Service and Gourmet Food and Gift Baskets categories.
CARLE PLACE, N.Y.--(BUSINESS WIRE)--1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), the world’s leading florist and a provider of specialty gifts for all occasions, today reported record revenues of $329.9 million for its fiscal second quarter ended December 31, 2006, representing an increase of 18.7 percent, or $52.0 million, compared with revenues of $277.8 million in the prior-year period. Revenue growth for the quarter was driven by double-digit growth in the Company’s key Consumer Floral, BloomNet Wire Service and Gourmet Food & Gift Basket business categories and included the contribution from Fannie May Confections Brands, which was acquired in May 2006. This revenue growth was achieved despite lower year-over-year sales in its Home & Children’s Gifts category reflecting the highly competitive nature of this category during the holiday period.
During the fiscal second quarter, the Company improved its operating expense ratio (excluding depreciation and amortization) by 130 basis points to 35.8 percent compared with the prior year period. This reflects management’s focus on leveraging its operating platform. Gross margin for the quarter also improved, increasing 110 basis points to 46.1 percent compared with last year’s fiscal second quarter. Combined with the revenue growth in the quarter, these factors resulted in an EBITDA improvement of $11.8 million, or 54 percent, to $33.8 million compared with $22 million in the prior year period. Net income (GAAP) for the quarter increased 63.7 percent to $16.9 million, or $0.26 per share, compared with $10.3 million, or $0.16 per share, in the prior year period. Pro forma EPS, excluding the effect of stock-based compensation, was $17.6 million, or $0.27 per share. (*A reconciliation of EBITDA and pro forma EPS to GAAP net income is included as part of the attached tables.)
Jim McCann, CEO of 1-800-FLOWERS.COM, said, “We are very pleased with our fiscal second quarter results, particularly the increase in gross margin and the continued improvement in our operating expense ratio. These factors enabled us to grow EBITDA 54 percent, or nearly $12 million, to $34 million and improve EPS more than 60 percent to $0.26 per share. Importantly, we achieved these results despite the highly competitive retail environment during the holiday period.”
McCann noted that the Company achieved double-digit revenue growth and improved profit contribution in its Consumer Floral, BloomNet Wire Service and Gourmet Food and Gift Basket businesses. In addition, the Company achieved increased leverage from its enterprise-wide business process improvement initiatives. “Our positive results in these areas more than offset the weaker performance we saw in our Home and Children’s Gifts business during the period. This illustrates the strength of our business model, particularly our focus on growing businesses that can best leverage our operating platform and our collection of unique assets – including our database of more than 25 million customers, our brand strength and our extensive online and offline marketing programs.”
McCann said the Company has taken proactive steps to address the performance of its Home and Children’s Gifts category. “We successfully managed inventories during the quarter in response to the lower demand thereby minimizing any impact on gross margins and working capital requirements going forward into the second half of FY07. In addition, we have implemented a management change and initiated a comprehensive review of all operations at this division as we develop our go-forward plans.”
In terms of its key customer metrics, the Company said more than 2.6 million e-commerce customers placed orders during the fiscal second quarter of which 53 percent were repeat customers. This reflects the Company’s ongoing focus on deepening the relationship with its existing customers through its expanded gift offers as well as services such as its Fresh Rewards loyalty program, the first such program in the floral category. During the quarter, the Company attracted 1.2 million new customers of which 63 percent, or 780,000, came to the Company through its online channels. “Customers continue to be attracted by the strength of our brands, as well as our expanded offering of products and services that help them connect with the important people in their lives,” said McCann.
CATEGORY RESULTS:
FLORAL:
* 1-800-FLOWERS.COM Consumer Floral: During the fiscal 2007 second quarter, revenues in this category increased 10.9 percent to $114.6 million compared to $103.3 million in the prior year period. Gross margin for the quarter increased 160 basis points to 39.7 percent compared with 38.1 percent in last year’s second quarter. Reflecting strong revenue and margin growth and improved operating leverage, Category EBITDA improved 43 percent to $13.3 million compared with $9.3 million in the prior year period. The Company defines Category EBITDA as earnings before interest, taxes, depreciation and amortization and before allocation of corporate overhead expenses.
* BloomNet Wire Service: Revenues increased 45.5 percent to $9.6 million compared with $6.6 million in the year ago period. Gross margin increased 710 basis points to 59.9 percent compared with 52.8 percent in the prior year period. Category EBITDA increased 114 percent to $3.3 million compared with $1.5 in last year’s second quarter, reflecting the growth in florist membership and product and service offerings compared with the prior year.
SPECIALTY BRANDS:
* Gourmet Food and Gift Baskets: Revenues increased 74.6 percent to $108.9 million compared with $62.4 million in the prior year period. Gross margin increased 90 basis points to 48.4 percent compared with 47.5 percent in the year ago first quarter. Category EBITDA increased 139 percent to $25.3 million compared with $10.6 million in the prior year period. Results in this category reflect revenue contribution of $42 million from the Fannie May Confections Brands business which was acquired in May 2006.
* Home and Children’s Gifts: Revenues declined 7.7 percent to $98.0 million compared with $106.2 million in the prior year period. Gross margin was 48.8 percent, down 50 basis points, compared with 49.3 percent in the same period last year. Category EBITDA was down 65.8 percent to $3.8 million compared with $11.2 million in the prior year period. The category EBITDA reflects the impact of lower revenues and gross margin as well as increased marketing costs associated with efforts to expand the category.
Company Guidance:
The Company reiterated its guidance for growth of more than 100 percent in EBITDA and EPS reflecting its stated focus on achieving continued improvements in gross margin and operating leverage. Based on the lower revenues from its Home and Children’s Gifts category, the Company said it anticipates total revenue growth for fiscal 2007 at the low end of its previous guidance range of approximately 17-to-20 percent. Regarding its current fiscal third quarter, which includes the Valentine holiday; the Company expects the period will represent approximately 22-to-24 percent of full-year revenues.
Definitions:
Pro Forma EPS: To supplement its consolidated financial statements presented in accordance with GAAP, the Company has presented pro forma EPS. The Company defines pro forma EPS as GAAP net income per common share excluding stock-based compensation expense, net of the related tax effect, as calculated under FAS No. 123R. The Company believes pro forma EPS provide a meaningful measure of year-to-year period comparative performance; however, its use and corresponding per share results do not lessen the importance of GAAP net income per common share.
EBITDA: Net income before interest, taxes, depreciation and amortization. The Company presents EBITDA because it considers such information a meaningful supplemental measure of its performance and believes it is frequently used by the investment community in the evaluation of companies with comparable market capitalization. The Company also uses EBITDA as one of the factors used to determine the total amount of bonuses available to be awarded to executive officers and other employees. The Company’s credit agreement uses EBITDA (with additional adjustments) to measure compliance with covenants such as interest coverage and debt incurrence. EBITDA is also used by the Company to evaluate and price potential acquisition candidates. EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are: (a) EBITDA does not reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance.
About 1-800-FLOWERS.COM®
For more than 30 years, 1-800-FLOWERS.COM Inc. – “Your Florist of Choicesm” – has been providing customers around the world with the freshest flowers and finest selection of plants, gift baskets, gourmet foods, confections and plush stuffed animals perfect for every occasion. 1-800-FLOWERS.COM® offers the best of both worlds: exquisite, florist-designed arrangements individually created by some of the nation’s top floral artists and hand-delivered the same day, and spectacular flowers shipped overnight “Fresh From Our Growerssm.” Customers can “call, click or come in” to shop 1-800-FLOWERS.COM twenty four hours a day, 7 days a week at 1-800-356-9377 or www.1800flowers.com. Sales and Service Specialists are available 24/7, and fast and reliable delivery is offered same day, any day. As always, 100 percent satisfaction and freshness are guaranteed. The 1-800-FLOWERS.COM collection of brands also includes home decor and children’s gifts from Plow & Hearth® (1-800-627-1712 or www.plowandhearth.com), Problem Solvers® (www.problemsolvers.com), Wind & Weather® (www.windandweather.com), Madison Place® (www.madisonplace.com), HearthSong® (www.hearthsong.com) and Magic Cabin® (www.magiccabin.com); gourmet gifts including popcorn and specialty treats from The Popcorn Factory® (1-800-541-2676 or www.thepopcornfactory.com); exceptional cookies and baked gifts from Cheryl&Co.® (1-800-443-8124 or www.cherylandco.com); premium chocolates and confections from Fannie May Confections Brands® (www.fanniemay.com and www.harrylondon.com); gourmet foods from GreatFood.com® (www.greatfood.com); wine gifts from Ambrosia.com (www.ambrosia.com); gift baskets from 1-800-BASKETS.COM® (www.1800baskets.com) and the BloomNet® international floral wire service, which provides quality products and diverse services to a select network of florists. 1-800-FLOWERS.COM, Inc. stock is traded on the NASDAQ market under ticker symbol FLWS.
Special Note Regarding Forward-Looking Statements:
The statements in this press release regarding current and future expectations involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to: the Company’s ability to achieve its revenue and profitability growth guidance for fiscal 2007; its ability to improve operating leverage and enhance its profit margins; its ability to manage the increased seasonality of its businesses; its ability to effectively integrate and grow its acquired companies; its ability to cost effectively acquire and retain customers; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to cost efficiently manage inventories; and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. For a more detailed description of these and other risk factors, please refer to the Company’s SEC filings including the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company expressly disclaims any intent or obligation to update any of the forward looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company.
Conference Call:
The Company will conduct a conference call to discuss the attached financial results today, Wednesday, January 24, 2007 at 11:00 a.m. ET. The call will be “web cast” live via the Internet and can be accessed from the Investor Relations section of the 1-800-FLOWERS.COM web site. An indexed recording of the call will be posted on the Investor Relations section of the Company’s web site within 2 hours of the call’s completion. A replay of the call can be accessed via telephone for twenty four hours beginning at 1:00 p.m. (ET) on 1/24/07 at: 1-888-286-8010 (domestic) or 1-617-801-6888 (international). Enter pass code #18237664.
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It's nice to see
What's nice to see is that real florists are helping 800FLOWERS revenues growing. Here's a corporation whose sole aim is to capture as much of the floral buying consumers business as possible, and florists who stand the most to lose, are mentioned as being one of the providers of revenue to allow them to do this.
Give florists a hand.
What's nice to see is that real florists are helping 800FLOWERS revenues growing. Here's a corporation whose sole aim is to capture as much of the floral buying consumers business as possible, and florists who stand the most to lose, are mentioned as being one of the providers of revenue to allow them to do this.
Give florists a hand.
sfox...just a *what if*...
*What IF* 800F was able to garner enough support to put a few final nails into the coffins of FTD and TF making them irrelevant, and then capture enough of the market to kill ProF?
I'm not saying they are the answer...just *What IF*?
*What IF* 800F was able to garner enough support to put a few final nails into the coffins of FTD and TF making them irrelevant, and then capture enough of the market to kill ProF?
I'm not saying they are the answer...just *What IF*?
1-800 had record sales - mostly due to the acquisition of the chocolate company they purchased last year. I don't believe they had record high profits in the quarter.
In order for 1-800 to 'take on' PF, they'd need to move even more sales over from florist-delivered to drop ship because overall flower sales aren't growing.
But they see their future in promoting more non-floral gifts, hence the purchase of all the candy, cookie, popcorn and gift basket companies over the last few years. Only 38% of their sales involve flowers and an ever-increasing portion of that number is delivered in a FedEx box.
What I do know is that revenues from florist services, the highest profit margin sector in the company, were up 50% and florists commissions, fees and profits from other services help pay for those 'Your Neighborhood Florist' ads promising '10% off every purchase' in every phone book in the country.
So customers call 1-800 instead of BloomsUSA (Flowers Sent Today). How does that help local florists' bottom lines? How does that help add value and satisfaction to the consumer buying experience?
Mark, the best shop in your town refuses to fill their orders
so 1800 is just redirecting sales to a competitor who may very well gain a toe hold, or goof up badly enough to make the buyer think twice about sending flowers in the future.
I guess we don't see their numbers the same way and I certainly don't see them as being champions of the cause of quality local florists.
In order for 1-800 to 'take on' PF, they'd need to move even more sales over from florist-delivered to drop ship because overall flower sales aren't growing.
But they see their future in promoting more non-floral gifts, hence the purchase of all the candy, cookie, popcorn and gift basket companies over the last few years. Only 38% of their sales involve flowers and an ever-increasing portion of that number is delivered in a FedEx box.
What I do know is that revenues from florist services, the highest profit margin sector in the company, were up 50% and florists commissions, fees and profits from other services help pay for those 'Your Neighborhood Florist' ads promising '10% off every purchase' in every phone book in the country.
So customers call 1-800 instead of BloomsUSA (Flowers Sent Today). How does that help local florists' bottom lines? How does that help add value and satisfaction to the consumer buying experience?
Mark, the best shop in your town refuses to fill their orders
so 1800 is just redirecting sales to a competitor who may very well gain a toe hold, or goof up badly enough to make the buyer think twice about sending flowers in the future.I guess we don't see their numbers the same way and I certainly don't see them as being champions of the cause of quality local florists.
carol
New Member
Then you will have "KING KONGE" to deal with for the next chapter in the ongoing saga, "How the FWOAC turns".
I'm not so sure the "what if" is the yellow brick road that 85% of florists will be able to afford either. I agree with Fox, the florists have only spread themselves thinner. And are just another revenue stream for, KING KONGE" also.
Being that I watch from the side lines, I do see where your coming from Boss.
I'm not so sure the "what if" is the yellow brick road that 85% of florists will be able to afford either. I agree with Fox, the florists have only spread themselves thinner. And are just another revenue stream for, KING KONGE" also.
Being that I watch from the side lines, I do see where your coming from Boss.
I don't hold to the *new* argument of turning off consumers to ever buying again, I believe that flower senders will always be flower senders, and judging by your and my current sales numbers thats a fact. Yes, they will migrate from one florist to another, but again, fewer florists, means stronger healthier florists.
And I never said they were the champions of local florists, only pondering the theory that fewer large players would be good for the industry.
If there were only 1 or 2 legitimate large players in the industry perhaps, *just perhaps* they would become to think that a true partnership was good for both of us>
Consolidation, IMHO would offer us a better opportunity to fight the good fight, right now there are too many players playing the game.
Chezbloom
Well-Known Member
If all the real florists simply quit all WS, we would have drop shippers and real florist designed deliveries. The public would know the difference, it would be so simple and we would'nt have to take the blame for inaccurate orders sent or try to figure out if real shops or OGs sent orders etc..I quit Teleflora 3 months ago (although they refuse to acknowledge it!) I swear I have had less stress because of it. So I say, get rid of all WS, thats my version of floral utopia. :soapbox:
Eric S
Demoted Webmaster
Simple you bet! It would change the look of the whole industry overnight.
For now I will settle with One Florist at a time and One Customer at a time.
Reply To Boss
Boss,
800Flowers is not a good guy wearing a white hat riding in to save florists. If you want to knock off FTD or Teleflora, florists could do that today by quitting.
In my humble opinion, FTD is the biggest enemy florists face right after florists themselves. FTD could be brought down to size, but florists are the roadblock. So if you are asking me if I back the guy riding a white horse named 800FLOWERS, it's a big hi oh NO!
Boss,
800Flowers is not a good guy wearing a white hat riding in to save florists. If you want to knock off FTD or Teleflora, florists could do that today by quitting.
In my humble opinion, FTD is the biggest enemy florists face right after florists themselves. FTD could be brought down to size, but florists are the roadblock. So if you are asking me if I back the guy riding a white horse named 800FLOWERS, it's a big hi oh NO!
PhillyPhlorist
Pro Member
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BOSS, lessor of evils?
Hey - 800 flowers is in the game for THEM...NOT the florist. I know, I've been down the 800 yellow brick road.
Riddle me this, Batman - when you call an 800 "sales associate" asking about a problem with an order, and they say to you, "YOU'RE not the florist, WE'RE the florist...you're just the filling partner..." how do you react? (I could say it here, but then Ryan would delete my post....)
If you want to be a member of BMT because you need a cost-effective way to transmit orders, then that's one thing. But, when you FILL for 800, then you are helping that segment - taking orders from the local florists.
FTD - same thing. The mass-merchant move is a prime example of what FTD has become. They will say their spin, "...but we're doing it to get the orders in the hands of the local florists." Rubbish.
We know the REAL reasons...$$$ in PROFITS... When either one ACTUALLY develops a SOLID plan to drive business DIRECTLY to the florist, and not intercept the orders and skim off the top, then THAT'S who your future is with.
...there I go again, in my pipe dream again...
- H.
TOTO
New Member
Only 53% are repeat Customers?
That means that, their customer retention rate is almost half with the other 47% going somewhere else the next time around.
Too bad their numbers were not broken down by categories so that, we could all see their biggest growth areas in sales versus their minus numbers.
I suspect that, what they've grown, aside from their new CANDY aquisition, is most likely DROP SHIP GIFTS and FARM DIRECT which does not require DA FILLER FLORISTS.
This is a great link to put on your own website.
ripoffreport.com/results.asp?q1=ALL&q5=800+flowers&submit2=Search%21&q4=&q6=&q3=&q2=&q7=&searchtype=0
Just put in the www. before ripoffreport.
That means that, their customer retention rate is almost half with the other 47% going somewhere else the next time around.
Too bad their numbers were not broken down by categories so that, we could all see their biggest growth areas in sales versus their minus numbers.
I suspect that, what they've grown, aside from their new CANDY aquisition, is most likely DROP SHIP GIFTS and FARM DIRECT which does not require DA FILLER FLORISTS.
This is a great link to put on your own website.
ripoffreport.com/results.asp?q1=ALL&q5=800+flowers&submit2=Search%21&q4=&q6=&q3=&q2=&q7=&searchtype=0
Just put in the www. before ripoffreport.
Valentine's Day Downgrade Wilts Florist's Shares
All is not rosy at 1-800, according to an article released on V-day from SmartMoney.
All is not rosy at 1-800, according to an article released on V-day from SmartMoney.
avenuegardensflorist
Well-Known Member
don't buy, don't buy, don't buy was the words of wisdom Mad Money's Jim Cramer spouted about 10 days ago
...I was thinking, don't worry, don't worry, etc....
...I was thinking, don't worry, don't worry, etc....
specialoccasion
New Member
New Discovery
Just wondered if anyone had seem some of the latest reviews for 800flowers? Lots of dissatisfied consumer reviews.
http://www.dealtime.com/xMR-1-800 Flowers~MRD-9466
Take a look at what is being said... some real recent
Just wondered if anyone had seem some of the latest reviews for 800flowers? Lots of dissatisfied consumer reviews.
http://www.dealtime.com/xMR-1-800 Flowers~MRD-9466
Take a look at what is being said... some real recent
thanks for the link!! interesting to see how many people are so unsatisfied with 800 flowers. I still think its crazy how shops are supporting 800 flowers when they are the ones putting our friends out of business!! lets stop worry about the wire services keeping us in business and worry about direct orders!!in my opinion i don't think they can all survive battling each other as far as pricing etc anyone else have an opinion on that?
steve
Well-Known Member
For those of you that say just Quit the WS. Or Every time they 800 or FTD screw up it will turn the tide. I say to you. You will not live long enough to see it change the situation in this industry.
We the independant florist can not compete without some sort of brand and brand reconginition. And larger shops need some sort of wire out capablities vs calling out orders. Ace Hardware and True Value Hardware are independant stores that came together under a name and created a brand so that they could compete with the national hardware chains and Home Depot/Lowes.
Quitting wire services will not solve one darn thing if anything it may only hasten our demise. I will admit that I use many of their images in my advertising and certainly on my web site. Yes I have shot some of my own pics on the web site. But I do not even begin to have enough pictures and the quality at times is iffy, and customers often want that item delivered half way across the country oh but we do not have a shop there!!!.
I have been frustrated with my own web site recently and I am looking to up grade it in doing so I have looked at many of the sites of memebers of this board as well as other florist who are not members of this board and my conclusion is we as florist do not stack up well to the web sites offered by 800 flowers and proflowers etc. ( I am being kind with that statement)
We are not going to win this war working by ourselves and certainly we will not win this war by continueing to think if we just quit the whole thing will go away.
We the independant florist can not compete without some sort of brand and brand reconginition. And larger shops need some sort of wire out capablities vs calling out orders. Ace Hardware and True Value Hardware are independant stores that came together under a name and created a brand so that they could compete with the national hardware chains and Home Depot/Lowes.
Quitting wire services will not solve one darn thing if anything it may only hasten our demise. I will admit that I use many of their images in my advertising and certainly on my web site. Yes I have shot some of my own pics on the web site. But I do not even begin to have enough pictures and the quality at times is iffy, and customers often want that item delivered half way across the country oh but we do not have a shop there!!!.
I have been frustrated with my own web site recently and I am looking to up grade it in doing so I have looked at many of the sites of memebers of this board as well as other florist who are not members of this board and my conclusion is we as florist do not stack up well to the web sites offered by 800 flowers and proflowers etc. ( I am being kind with that statement)
We are not going to win this war working by ourselves and certainly we will not win this war by continueing to think if we just quit the whole thing will go away.
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