1-800-FLOWERS.COM, Inc. Reports Results for Its Fiscal 2019 Third Quarter

Total net revenues increased 4.1 percent to $248.4 million compared with $238.5 million in the prior year period.
Net loss was $8.2 million, or a loss of $0.13 per share, compared with a net loss of $8.5 million, or a loss of $0.13 per share in the prior year period.
Adjusted EBITDA1 was a loss of $4.4 million, compared with a loss of $3.6 million in the prior year period.
Company increases its guidance for fiscal 2019 EPS.

1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading gourmet food and floral gift provider for all occasions, today reported results for its Fiscal 2019 third quarter ended March 31, 2019.

Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said, “During the fiscal third quarter, we continued to drive strong revenue growth despite the shift of the Easter holiday into our fiscal fourth quarter, compared with last year when the holiday fell in our fiscal third quarter. The investments we have been making in the 1-800-Flowers.com brand throughout the year enabled us to further extend our market leading position during the quarter, achieving growth of nearly seven percent, driven by a strong Valentine’s Day holiday period. In our BloomNet business, we continued to see strong order volume growth, which is helping to expand our market share position. BloomNet revenues for the period increased 15.1 percent, also driven by strong Valentine’s Day performance.

“In our Gourmet Foods and Gift Baskets segment, the Easter shift resulted in revenues being down 3.8 percent. However, throughout the quarter we saw strong revenue increases in everyday gifting occasions with Harry & David and 1-800-Baskets continuing to achieve strong growth in everyday occasions such as Birthday, Sympathy, Get Well and Thank You. Also, during the quarter, we continued to invest in innovations focused on customer engagement with enhancements to our category-leading mobile platforms and AI-driven conversational commerce initiatives. As we head into our fiscal fourth quarter, which will benefit from the Easter shift, we are well positioned to continue our strong growth momentum and further enhance our position as our customers’ leading destination to help them express, connect and celebrate,” he said.

Third Quarter 2019 Financial Results
For the third quarter of 2019, total net revenues increased 4.1 percent to $248.4 million compared with $238.5 million in the prior year period. This growth was achieved despite the shift of the Easter holiday into the Company’s fiscal fourth quarter. Revenue growth for the quarter was primarily driven by strong growth during the Valentine’s Day holiday period for the Company’s 1-800-Flowers brand and BloomNet wire service business, which increased 7.0 percent and 18.0 percent, respectively, compared with the prior year holiday period. Revenues also benefited from strong growth in everyday gifting for 1-800-Flowers.com, Harry & David and 1-800-Baskets.

Gross profit margin for the quarter was 39.3 percent, compared with gross profit margin of 39.2 percent in the prior year period. Operating expenses as a percent of total revenues were 45.1 percent, compared with 44.4 percent in the prior year period.

The combination of these factors resulted in an Adjusted EBITDA loss of $4.4 million compared with an Adjusted EBITDA loss of $3.6 million in the prior year period. The increased Adjusted EBITDA loss in the period primarily reflects the impact of the Easter shift combined with the Company’s investments to drive accelerated revenue growth and higher bonus expense reflecting the Company’s expectation that it will pay full bonuses in fiscal 2019 compared with a minimal bonus payout in fiscal 2018. Net loss for the quarter was $8.2 million, or loss of $0.13 per share, essentially unchanged compared with a net loss of $8.5 million, or loss of $0.13 per share, in the prior year period.
more detail at: http://investor.1800flowers.com/investors/news-and-events/press-releases/2019/04-30-2019-123028803

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