1-800-Flowers.com, a multi-channel gift retailer, reported record revenue for fiscal 2001 second quarter ended Dec. 31, 2000. Revenue grew 19% to $134.2 million compared with $112.8 million in the same period last year. Online revenue increased 68.8% to $47.7 million, representing 35.5% of total net revenue, compared with $28.3 million, or 24.3% of total net revenue, in the same period last year. Telephone revenue for the quarter increased 3% to $79.2 million compared with $76.9 million in the second quarter of fiscal 2000. Total virtual channel revenue (combined online and telephone) increased 20.6% to $126.9 million compared with $105.2 million in the prior year period. Online traffic during the second quarter increased 75% from the year ago period. The company attracted more than 964,000 new customers during the second quarter, including more than 380,000 new online customers. The company's customer database now exceeds 10 million unique names. Approximately 1.6 million customers placed orders during the quarter, of which 40% were repeat customers, up from 38.4% in the second quarter of fiscal 2000. Approximately 250,000 customers placed multiple orders during the quarter, many using both online and telephone access. Approximately 54% of total virtual channel revenues came from non-floral products during the quarter. For fiscal 2001 second quarter, the company reported an improved gross profit margin of 41.1% compared with 39% reported in last year's fiscal second quarter. The company attributed the increase to strong demand for its expanded offering of non-floral products, which carry a higher gross profit margin compared with floral gifts, combined with customer service efforts and management's decision to avoid the aggressive promotional discounting that characterized the recent holiday shopping season. Also during the quarter, the company said it was able to adjust its planned operating expenses, specifically in the areas of marketing and selling and general and administrative costs, appropriate to prevailing market conditions. As a result of the higher gross profit margin and reduced operating expenses, the company achieved a 40% reduction in net loss for the quarter to $10.5 million or $0.16 per share compared with a net loss of $17.5 million or $0.28 per share in the prior year period. Jim McCann, chairman and CEO of 1-800-FLOWERS.COM said, that despite the outlook for tightened consumer spending, the company anticipates achieving revenue growth in its virtual channels of 18% to 20% during the second half of fiscal 2001, compared with the same period in fiscal 2000.