Remember the lipstick I mentioned?
The report headline reads "FTD Group, Inc. Reports Second Quarter Fiscal Year 2007 Revenue Increase of 38.8% versus the Prior Year"
Now that's a WOW... until you dig into the numbers.
Consumer sales rose 9.8% but profits (GAAP numbers) in the segment fell slightly compared to the same quarter last year. (Too much discounting, perhaps?)
Florist Segment sales decreased $1M. The bright spots were technology and online services.
The primary growth in sales was in the new revenue from last summer's Interflora purchase. $37.5M to the top line for the quarter.
The balance sheet shows assets at $780M. Of that $186.5M is trademark and $416.5M is goodwill for a total of $603M.
Without the Interflora purchase, it appears year-over-year numbers would have shown a decrease in profits.
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FTD was practically giving away flowers in December. They were running 15 tulips with a square glass vase for $19.95 and a dz roses for $17.99 dropped shipped and were offering consumers florist-delivered Candy Cane Lanes for $19.95 (Yes, 19.95!) and were wiring them to shops for the SRP of $39.95. (Do the math - $19.95 + $11.99 service charge = $31.94. The filling florist's net dollars would be $29.17 on a $39.95 order so FTD still had a couple bucks left over and kept feeding the 'I need incomings or I'll quit' crowd.)
I fully expected for them to have some boffo post-Christmas headline touting a huge increase in consumer sales. When none came, I knew the deep discounting and increased advertising expenses had been less-successful-than-hoped.
Tune in at 10 am Eastern to hear Soenen spin the numbers.
The report headline reads "FTD Group, Inc. Reports Second Quarter Fiscal Year 2007 Revenue Increase of 38.8% versus the Prior Year"
Now that's a WOW... until you dig into the numbers.
Consumer sales rose 9.8% but profits (GAAP numbers) in the segment fell slightly compared to the same quarter last year. (Too much discounting, perhaps?)
Florist Segment sales decreased $1M. The bright spots were technology and online services.
The primary growth in sales was in the new revenue from last summer's Interflora purchase. $37.5M to the top line for the quarter.
The balance sheet shows assets at $780M. Of that $186.5M is trademark and $416.5M is goodwill for a total of $603M.
Without the Interflora purchase, it appears year-over-year numbers would have shown a decrease in profits.
------------------------------------
FTD was practically giving away flowers in December. They were running 15 tulips with a square glass vase for $19.95 and a dz roses for $17.99 dropped shipped and were offering consumers florist-delivered Candy Cane Lanes for $19.95 (Yes, 19.95!) and were wiring them to shops for the SRP of $39.95. (Do the math - $19.95 + $11.99 service charge = $31.94. The filling florist's net dollars would be $29.17 on a $39.95 order so FTD still had a couple bucks left over and kept feeding the 'I need incomings or I'll quit' crowd.)
I fully expected for them to have some boffo post-Christmas headline touting a huge increase in consumer sales. When none came, I knew the deep discounting and increased advertising expenses had been less-successful-than-hoped.
Tune in at 10 am Eastern to hear Soenen spin the numbers.
