An acquisition helps boost 1-800-Flowers’ web sales 127% in Q2
February 3, 2015 10:16 AM
The acquisition of Harry & David Inc. helped bolster web sales for 1-800-Flowers.com Inc. during that company’s second quarter—traditionally 1-800-Flowers’ biggest for sales—which ended Dec. 28. 1-800-Flowers says it generated $409.1 million in web sales during the quarter, up 127.2% from $180.1 million a year earlier.
Harry & David’s contributions also helped shift a greater portion of 1-800-Flowers’ sales to the web. Web sales accounted for 76.6% of 1-800-Flowers’ net revenue of $534.3 million, up from 67.6% a year ago, when net revenue was $266.3 million.
1-800-Flowers says sales increased across its business segments, even when excluding Harry & David’s impact. Sales increased 2.6% in consumer floral, 1.0% in its BloomNet division, and 6.9% in gourmet food and gift baskets. (BloomNet is the e-retailer’s division that provides florists with supplies and services.) The 6.9% growth in the gourmet food and gift baskets segment factors in an approximate $13.6 million loss from the segment’s Fannie May brand. A fire on Thanksgiving at a Fannie May warehouse and distribution center in Ohio destroyed Fannie May and Harry London inventory 1-800-Flowers had expected to sell during the holiday season, the company says.
Sales generated by the Harry & David division fall into the gourmet food and gift baskets segment. Including Harry & David sales, 1-800-Flowers says net sales in the segment grew 177.2% to $414.7 million. When 1-800-Flowers reported its Q1 financials three months ago, it said it would by and large execute on the holiday plan the Harry & David team had developed for the holiday season. Today 1-800-Flowers said it is getting to work on bringing Harry & David more in to the 1-800-Flowers fold, which executives say will save it money on operations over the next three years.
“With Harry & David’s key holiday season now completed, we have recently launched a comprehensive integration program designed to identify and pursue synergistic opportunities for both revenue growth and operating efficiencies,” says CEO Jim McCann. Last fall the e-retailer began rolling out a multi-brand web site that shares one software code base and lets consumers shop across 1-800-Flowers brand sites using one cart, sign-in and address book.
In its Q2 earnings statement, 1-800-Flowers’ said the company is on track to generate more than $1.1 billion in net revenue during its fiscal 2015. 1-800-Flowers.com Inc. generated $756.3 million in sales during its 2014 fiscal year. The company, based on 2013 sales, is No. 65 in the 2014 Internet Retailer Top 500.
For the quarter ended Dec. 28, 1-800-Flowers.com reported:
- E-commerce sales of $409.1 million, up 127.2% from $180.1 million in Q2 of fiscal 2014.
- Total sales of $534.3 million, up 100.6% from $266.3 million.
- Consumer floral sales of $99.6 million, a 2.6% increase from $97.1 million.
- Gourmet food and gift baskets sales of $414.7 million in Q2 of fiscal 2015, up 177.2% from $149.6 million.
- Net income of $45.5 million compared with a net income of $18.0 million in the same quarter last year, a 152.8% increase.
- 3.3 million consumers placed orders during Q2, of which 1.3 million, or 39.4% were new customers.
For the six months ended Dec. 28, 1-800-Flowers.com reported:
- E-commerce sales of $493.1 million, up 88.9% from $261.0 million.
- Total sales of $661.0 million, up 69.7% from $389.4 million.
- Consumer floral sales of $174.0 million, a 3.1% increase from $168.7 million.
- Gourmet food and gift baskets sales of $447.0 million in the first half of fiscal 2015, up 147.1% from $180.9 million.
- Net income of $41.5 million compared with a net income of $13.4 million for the first six months of fiscal 2014, a 209.7% increase.