FTD Q3 Numbers

[CHR]

UNTD (parent company of FTD) reported their 3rd quarter today.

Products revenues (Consumer Sales) - 09 - $ 113.3M vs 08 - $ 149.7M (24%)
Services revenues (Florist Services) - 09 - 32.8M vs 08 - 39.7M (17%)

Consumer orders (thousands) - 09 - 1,691 vs 08 - 1,994 (15%)
Average order value - 09 - $ 57.70 vs 08 - $ 65.59 (12%)

-- Segment revenues, including a $16.5 million negative impact of foreign currency exchange, were $148.0 million, a decrease of 23% versus the year-ago quarter.



-- Segment revenues in constant currency terms decreased 14% versus the year-ago quarter, excluding the foreign currency exchange rate impact resulting from a strengthened U.S. Dollar versus the British Pound.

In summary, sales down 23%, custom count down 15%, average sale down 12%.

This tracks along with the numbers 1-800-Flowers released last week.

We'll see who fares better this quarter:
30 gifts for Under $30 from 1-800 or
$19.95 Roses from PF or
Luxury from FTD or
The Antidote to Petulant Boxed Flowers from Teleflora

Having seen all four TV commercials, frankly, PFs is the most impressive/memorable with testimonials from customers and the low, low price offerings.

 

[Joe Mioux]

all you need to do is look at the directory compared to jan's directory. It's another 1/2 inch thinner.

unfortunately, i won't be able to make a comparison in fall as I will be contributing to it getting thinner.

joe

 

[duanermb]

all you need to do is look at the directory compared to jan's directory. It's another 1/2 inch thinner.

unfortunately, i won't be able to make a comparison in fall as I will be contributing to it getting thinner.

joe

How will you send orders to other areas? Is it possible?

 

[prestonway]

all you need to do is look at the directory compared to jan's directory. It's another 1/2 inch thinner.

unfortunately, i won't be able to make a comparison in fall as I will be contributing to it getting thinner.

joe

Joe, gotta ask why you think they even want a thicker book?

You're leaving, but are they making any money off of your membership?

If not, do they care if you leave?

IIRC you seem to have negotiated down your FTD fees & dues considerably already.

Just asking...

 

[CHR]

I listened to the conference call off and on this afternoon.

Gotta say Goldston is smooth and confident and he really knows how to express himself impressively.

In the OP, I didn't mention FTD actually generated a profit for UNTD during the quarter - the numbers are a bit 'thick' to read the way they were presented. Juxtapose that with 1-800's big loss. Goldston twice mentioned how FTD would not promote 'free shipping' or 'free service charge' and asserted basically that 1-800 was heavily reliant on discounting - to the detriment of their bottom line. He took a few verbal jabs at 1-800 during the call.

He talked about the Top 100 group and his florist advisory group and reasserted how the company intended to reestablish the brand as a mark of quality. Very proud of the commercial and feels the premium look should be a strong direction to promote local florists. (How he thinks those mass bouquets of PhotoShopped roses are 'cutting edge' is a bit funny...but I digress...)

Goldston reminded listeners that it had been 10 years since FTD last aired national TV ads. He's very proud of the new website and invited everyone to compare it to 1-800, TF (and *I think* PF, too). Said the 'good-better- best' 3 pictures of the same look were successful.

He also mentioned that FTD was similar in promotion periods, practices to Faberge' (where he was President/COO at the age of 32.)

He gets an 'A' for presentation and enthusiasm... yet FTD is still bombarding consumers with $19.99 products and promoting more drop-ships than arrangements so until he walks the walk about promoting flower shops, the jury's out.

 

[Rhonda]

hmm, hasn't been that long since FTD did national commercial promotion, I think he's got his years a bit mixed up//
Remember last Valentine's Day with the uniformed gentleman with the huge arm bouquet of roses (or was it a vase?)...along with the big ftd.com at the end? It certainly hasn't been 10 years. (He needs a better history researcher)

 

[Joe Mioux]

Joe, gotta ask why you think they even want a thicker book?

You're leaving, but are they making any money off of your membership?

If not, do they care if you leave?

IIRC you seem to have negotiated down your FTD fees & dues considerably already.

Just asking...

Frank,

Yes, I am leaving and yes they were making money off me, just maybe not covering all their fixed costs with my negotiated lower member fees.

The Merc fees got slipped back in a few months ago. Imagine that, FTD added back a fee that they promised never would happen.

Yea, they care if I leave because now they have a hole in delivery area, but that isn't my problem.

The book getting thinner? I am amused at how small it has gotten and its getting smaller does say something about membership numbers and which way membership numbers are trending, doesn't it?

joe

 

[BOSS]

Word on the street..............

Gotta say Goldston is smooth and confident and he really knows how to express himself impressively.

Continuing today's word... whatever...

Word on the street is:
Mrs. Goldston to Mr. Goldston "you're an idiot for buying a company that even I would NOT buy anything from!"

I think I like this woman!!

 

[steve]

As noted above both FTD's numbers and 800 flowers numbers are down similarly. When I compare my trend for that qtr I am not down nearly as much and I wonder if other florist numbers also are better then the big guys if so maybe we are holding up better then we think?

Ftd down 23% in sales I am down .085%

Ftd down 15% in customers I am down .084%

Ftd average sale down 12 % I am down .011%

 

[cs1]

We dropped out after 35 years of being in FTD. I just can't see the reason to have 2 wire services. If I can't get it done with Teleflora most shops will still do a discount on a cc. With Google it's just not that hard to find a shop in any city.

 

[CHR]

With Google it's just not that hard to find a shop in any city.

Not for florists needing to get orders out - and especially not for consumers wishing to order direct from someone local.

 

[cs1]

Very true.