While holiday unit sales of print books got off to a slow start Thanksgiving weekend, they ended on a strong note. Print unit sales increased 7% in the week ended Dec. 24, 2017, over the comparable week in 2016 at outlets that report to NPD BookScan. The gain was driven by the retail and club channel, where unit sales were 8% higher than the week ended Dec. 25, 2016. Sales through mass merchandisers fell 2% in the week compared to 2016. Juvenile nonfiction had the strongest gain among the major book segments, with units up 19% over 2016. Rob Elliott’s Laugh-Out-Loud Jokes for Kids was #1 on the category bestseller list, selling more than 33,000 copies. Star Wars: The Last Jedi: The Visual Dictionary by Pablo Hidalgo moved up the list in the week, selling almost 25,000 copies, which put it in fourth place on the segment bestseller list. Click Read More below for additional information.
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading gourmet food and floral gift provider for all occasions, today reported results for its fiscal 2018 second quarter. Chris McCann, CEO of 1-800-FLOWERS.COM, said, “Our results for the fiscal second quarter were mixed. In terms of revenues, while total revenue growth was below our expectations, we were pleased to see continued acceleration for the Harry & David brand, which grew ecommerce revenues nearly six percent during the quarter. In addition, we had solid revenue growth in 1-800-Baskets.com consumer and wholesale businesses and in our consumer floral business, where the 1-800-Flowers.com brand further extended its market leadership position during the quarter.
“These positive trends were offset during the quarter by operational issues in our Cheryl’s Cookies business in the final week of the holiday season. The temporary disruption to Cheryl’s production and fulfillment operations was related to a new manufacturing and warehouse management system that was installed during our fiscal first quarter. Most important, the issue has been addressed and sales of Cheryl’s Cookies, which were on plan prior to the mid-December disruption, have resumed at a solid pace since the start of the current fiscal third quarter.
“As we enter the second half of our fiscal year, we see several tailwinds – including better day placement for the Valentine holiday, the modernization and increasing strength of Harry & David and growing everyday gifting across all of our brands – that will enable us to accelerate revenue growth to more than five percent and drive year-over-year increases in bottom-line contribution for all three of our business segments.”
Fiscal 2018 Second Quarter Results:
Total net revenues for the quarter were $526.1 million, compared with total reported revenues of $554.6 million in the prior year period. On a comparable basis, total net revenues grew 2.4 percent, or $12.4 million, compared with $513.7 million in the prior year period. Comparable revenue growth was driven primarily by the Company’s Gourmet Food and Gift Baskets segment, which increased 2.6 percent. This growth, combined with Consumer Floral segment growth of 2.3 percent, more than offset slightly lower revenues in the Company’s BloomNet segment, which were down less than 1.0 percent.
Gross profit margin for the quarter was 44.7 percent, compared with reported gross profit margin of 46.3 percent in the prior year period. Comparable gross profit margin for the prior year period was 46.9 percent. The lower reported and comparable gross profit margin primarily reflected the impact of the operational issue at the Company’s Cheryl’s Cookies brand combined with increased transportation costs in the Gourmet Food and Gift Baskets segment and initiatives to take advantage of opportunities in the marketplace to extend our leadership for the 1-800-Flowers.com brand. Operating expenses as a percent of total revenues was 28.7 percent, compared with reported operating expenses as a percent of total revenues of 28.9 percent in the prior year period. Comparable operating expenses as a percent of total revenues was 29.1 percent in the prior year period.
The combination of these factors resulted in Adjusted EBITDA of $94.5 million, compared with reported Adjusted EBITDA of $101.7 million. The lower adjusted EBITDA primarily reflects the impact of the operational issues at the Company’s Cheryl’s Cookies business as well as lower contribution margin in the Company’s Consumer Floral segment. Net income was $70.7 million, or $1.06 per diluted share. On a comparable basis, net income was $58.5 million, or $0.88 per diluted share, unchanged compared the prior year period.
The Company’s net income and Adjusted EPS for the fiscal 2018 second quarter include a benefit of $15.9 million, or $0.24 per diluted share related to the impact of the “Tax Cuts and Jobs Act” legislation that was signed into law on December 22, 2017. This consisted of a discrete tax benefit of $12.2 million, or $0.18 per diluted share reflecting a revaluation of deferred tax liabilities using the lower corporate tax rates included in the new tax legislation and a benefit of $3.7 million, or $0.06 per diluted share, reflecting the Company’s lower transitional federal tax rate in fiscal 2018 of 28.0 percent.
more detail at: https://investor.1800flowers.com/investors/news-and-events/press-releases/2018/01-31-2018-120153093