E-commerce grows 4.8% for in Q2

February 10, 2014 10:08 AM Inc. generated $266.3 million in sales during its fiscal 2014 second quarter, up 5.9% from $251.4 million a year ago. Online sales accounted for $180.1 million, or 67.6% of the Q2 2014 total, down slightly percentage-wise from 68.3% a year ago, when online brought in $171.8 million in revenue. The flower and gift retailer’s fiscal Q2 is its biggest sales quarter and encompasses Thanksgiving and Christmas.

The retailer is No. 58 in the Internet Retailer 2013 Top 500 Guide.

The retailer’s gourmet food and gift baskets division accounted for 56.1% of Q2 2014 sales, and grew 6.1% year over year. The consumer floral division grew 5.8% year over year and accounted for 36.5% of sales. With $19.9 million in revenue during the quarter, the retailer’s BloomNet Wire Service division led in year over year sales growth, 6.4%. BloomNet is the e-retailer’s division that provides florists with supplies and services to help them run their businesses.  

“Our solid growth during the fiscal second quarter, across all three of our business segments, was achieved despite the significant headwinds we saw throughout the period, including the federal government shutdown in October and the calendar shift that resulted in six fewer shopping days between Thanksgiving and Christmas,” says Jim McCann, CEO of Inc.

For its fiscal 2014 second quarter ending Dec. 29, reported:

• E-commerce sales of $180.1 million, up 4.8% from $171.8 million during the second quarter of fiscal 2013.

• Total sales of $266.3 million, up 5.9% from $251.4 million a year ago.

• Net income of $18.0 million, up 12.5% from $16.0 million a year ago.

• It attracted 637,000 new customers during the quarter, and 1.6 million consumers placed orders.

Looking ahead, the company says it is launching FruitBouquets and Fannie May-branded chocolate-dipped berries. It is also planning to launch an Internet-based retail technology platform for florists under its BloomNet business. Inc. generated $123.0 million in sales during the first quarter of its 2014 fiscal year, which ended Sept. 29.

Total sales were up 2.8% from $119.6 million during Q1 2013. The flowers and gift e-retailer says its gourmet food and gift baskets division grew 15.1% during the quarter, generating $31.2 million in sales versus $27.1 million during Q1 2013. That growth helped offset a slight decline in its consumer floral division.

The e-retailer’s B2B division, BloomNet Wire Service, also grew 2.5% during the quarter, from $19.8 million to $20.3 million. “We saw continued, solid e-commerce growth in our Cheryl’s, Fannie May and The Popcorn Factory brands,” McCann says. “The revenue growth we achieved in our first quarter reflected a number of factors that we believe bode well for the current fiscal second quarter, which includes the key holiday season and our full fiscal year.”

For the quarter ended Sept. 29, reported:

  • E-commerce sales of about $80.9 million, down 0.25% from $81.1 million in Q1 of fiscal 2013.
  • Total sales of $123.0 million, up 2.8% from $119.6 million in Q1 of fiscal 2013.
  • Consumer floral sales of $71.5 million, a decrease of 1.8% from $72.8 million in Q1 of fiscal 2013.
  • Gourmet food and gift baskets sales of $31.2 million in Q1 of fiscal 2014, up 15.1% from $27.1 million a year ago.
  • Net loss of $4.6 million, about the same as its loss during Q1 2013.

The company further announced that approximately 1 million consumers placed orders with it online during the quarter and that 62.6% of shoppers were returning customers. 





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