Strong Growth in Challenging Times
SAN FRANCISCO, Sept. 22, 2020 (GLOBE NEWSWIRE) -- As markets and retailers have been buffeted by 2020’s unique challenges, 1-800-FLOWERS.COM, Inc. (FLWS:NASDAQ) has managed to meet the needs of its investors and customers by enhancing its Celebratory Ecosystem and fortifying its business strategy with new acquisitions. Leveraging the popularity of its e-commerce mainstays, which include Harry & David®, The Popcorn Factory®, Cheryl’s Cookies®, 1-800-Baskets.com®, Simply Chocolate®, and Shari’s Berries®, as well as the most recent addition to its brand portfolio, PersonalizationMall.com, the company’s focus on consumer satisfaction drove strong revenue growth over the past fiscal year.
~$1.5 billion total net revenues in fiscal year 2020, a 19.3% increase over 2019
Net income in fiscal year 2020 of $65 million
New customer growth over the fiscal year of more than 30%
Increased revenue growth in the Gourmet Foods and Gift Baskets segment of more than 112% in Q4/FY 2020
Acquisition of PersonalizationMall.com and additional services and products developed for vendors and customers
Advisor Access spoke with Chris McCann, president and CEO of 1-800-FLOWERS.COM, Inc.
Advisor Access: How would you describe 1-800-FLOWERS.COM, Inc. and what factors were instrumental in driving record revenue and profit growth for the company’s recently completed fiscal 2020 fourth quarter and full year?
Chris McCann: We are the leading provider of gifts designed to help customers express, connect, and celebrate. Our total net revenues for our fiscal 2020 fourth quarter (Q4) increased 61.1% to $418 million, and our total net revenues for the full year increased 19.3% to $1.49 billion. It’s important to note that through the first three quarters of our fiscal year—before the impact of the COVID-19 pandemic—we achieved solid top- and bottom-line growth, as well as strong growth in our customer files…
AA: 1-800-FLOWERS.COM, Inc. has three business segments. What are the revenues for each segment and which brands are within each segment?
CM: Gourmet Foods and Gift Baskets is our largest business segment, with the highest revenue and gross profit margin (GPM) growth potential. Fiscal 2020 revenues in this segment increased 21.1% to $785.5 million.
Our Consumer Floral segment is the category leader, and our 1-800-Flowers.com® floral brand has powerful brand equity. Fiscal 2020 revenues in this segment increased 19.2% to $593.2 million, further extending our market leadership position…
Our BloomNet® Wire Service segment achieved fiscal 2020 revenue growth of 8.6%, with revenues for the year increasing to $111.8 million. BloomNet is the category leader in quality and innovation…
AA: Which specific products and programs can you highlight in the record revenue growth of 1-800-FLOWERS.COM, Inc. during the company’s fiscal 2020 fourth quarter?
CM: In our Gourmet Foods and Gift Baskets segment, revenue growth for the fiscal 2020 fourth quarter increased more than 112%, as products and product collections that had already been showing strong growth became go-to purchases for our customers…
AA: In addition to substantial growth from existing customers, 1-800-FLOWERS.COM, Inc. is significantly growing its new customer file. What do these gains reflect?
CM: Through the first three quarters of fiscal 2020, we achieved more than 10% growth in our new customer file. This reflects…
AA: What advantages does the recently completed acquisition of PersonalizationMall.com bring to 1-800-FLOWERS.COM, Inc.?
CM: We are very pleased to have closed the acquisition of PersonalizationMall.com well ahead of the key holiday season, with the business up and running and already growing nicely on a year-over-year basis…
AA: In what ways is 1-800-FLOWERS.COM, Inc. positioned to continue meeting the challenges of the current environment, and also to sustain future growth?
CM: We entered fiscal 2021 with a combination of…Strong Growth in revenues…a strong balance sheet…Proven leveragability…strength of our brands…
AA: Thank you, Chris.
About Advisor Access:
Advisor-Access LLC brings compelling investment ideas to investors in the form of in-depth interviews with company management and the latest fact sheets and corporate presentations.
1-800-FLOWERS.COM, Inc. has paid Advisor Access a fee to distribute this email. Chris McCann had final approval of the content and is wholly responsible for the validity of the statements and opinions.
CONTACT: CONTACT INFORMATION Contact: Advisor Access Rick Baggelaar Rick@advisor-access.com