1-800-Flowers reports 4Q loss

1-800-Flowers shares fall after it reports 4Q loss as it trimmed operations

Associated Press

CARLE PLACE, N.Y. (AP) -- 1-800-Flowers.com Inc. reported a loss for its fiscal fourth-quarter as the floral company trimmed its operations and suffered from a shift in holiday timing.

Shares fell more than 5 percent in afternoon trading following the report.

The Carle Place, N.Y., company posted a loss of $1.7 million, or 3 cents per share, for the quarter that ended June 30. It reported net income of $1.8 million, or 3 cents per share, in the fourth quarter last year.

1-800-Flowers has been shedding some non-essential businesses. It sold off 17 stores last year and it decided during the most recent quarter to divest its Winetasting.com business to focus on its gourmet foods and gift baskets business.

The company said that on an adjusted basis, it earned a penny per share from its continuing operations, versus 3 cents per share last year.

Analysts polled by FactSet were anticipating earnings would be flat on a per share basis for the quarter.

1-800-Flowers said that its total revenue slipped to $173 million from $177.3 million, hurt also by the Easter holiday falling in its third quarter this year instead of the fourth quarter.

The company noted that it paid off the final $1.8 million on its term debt during the fourth quarter and finished the year with a debt-free balance sheet.

1-800-Flowers said that its net income for the full year slipped to $12.3 million, or 19 cents per share, from $17.6 million, or 27 cents per share, last year. Its annual revenue increased to $735.5 million from $707.5 million.

The company said it expects revenue growth across all of its segments for its 2014 fiscal year, with its total revenue increasing in the mid-single-digit range. It also expects its earnings per share to improve, but did not set a specific forecast.

1-800-Flowers said that it anticipates its growth trends will continue but also said it plans to invest in key areas for long-term gains, such as social and mobile initiatives, its Cheryl's Cookie Cards lines and more.

"While we remain cognizant of the uncertainty in the global economy, we believe the efforts we have underway will help us deepen our relationship with our customers, helping them deliver smiles, and build shareholder value," Jim McCann, CEO of the company, said in a statement.

Shares of the company fell 31 cents to $5.50 in afternoon trading. They are still near the higher end of their 52-week range of $2.77 to $7.17.

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