In its second-largest acquisition, Amazon buys the company for $970 million.
Sales at online flower retailer Proflowers grew 70% in its fiscal year which ended June 30 while marketing spending fell 50%. It is projecting comparable growth for fiscal 2002, which it says will result in its first profitable year.
With a 70% boost in revenue for the year, online flower retailer Proflowers Inc. had record revenue for the year. For the fiscal year that ended June 30, San Diego-based Proflowers had revenue of $46 million. Fourth quarter revenue was up 67% to $18.2 million. The company also reported profitable fourth quarter earnings before interest, taxes, depreciation and amortization of $97,000.
Proflowers is projecting comparable growth for fiscal 2002, which it says will result in its first profitable year. The increase in sales was achieved while Proflowers decreased its marketing spending by 50%, the company said. "This kind of performance underscores the superior value of our direct-from-the-grower business model, our scalability and our exceptional customer service," said Bill Strauss, chief executive officer of Proflowers.
Proflowers said its record fourth quarter was primarily driven by strong Mother`s Day sales, with more than 200,000 shipments during the week before the holiday. In 2000, Mother`s Day shipments reached a one-day peak of 43,000 bouquets; this year, Proflowers more than doubled that by shipping 100,000 orders on a single day.