The stagnant economy took a toll on e-commerce revenue for 1-800-Flowers.com Inc. in the third quarter of fiscal 2009.
For the fiscal quarter ended March 29, e-commerce sales declined by 25.7% to $131.9 million from $177.5 million in the third quarter of fiscal 2008. Overall revenue for 1-800-Flowers.com, No. 36 in the Internet Retailer Top 500 Guide, decreased by 21.3% to $172.9 million in Q3 fiscal 2009 from $219.6 million in the prior year. In the quarter the web accounted for 76% of total sales vs. 81% in Q3 in fiscal 2008. 1-800-Flowers.com also reported a net loss of $65.8 million in the third quarter of fiscal 2009 compared with net income of $3.3 million in the previous year. The company took a charge of $76.5 million in the quarter for the write down of parts of its gourmet food and gift baskets segments and another $1.5 million charge for severance-related costs.
For the first three quarters of fiscal 2009, web sales decreased by 17% to $469.8 million from $566.1 million in the prior year while total revenue decreased year over year by 1.4% to $660.3 million from $669.6 million. For the period e-commerce represented 71% of all sales, compared with 85% in the first three quarters of fiscal 2008. 1-800-Flowers.com also posted a net loss of $76.2 million vs. net income of $16.8 million in the prior year.
About 1.7 million customers placed an online order in fiscal Q3, of which 61%--about 1.04 million--were repeat customers, says 1-800-Flowers.com. "During our fiscal third quarter, we saw continued weakness in consumer demand related to the current economic climate,” says CEO Jim McCann.
Kevin Ranford, director of web marketing at 1-800-Flowers.com, is speaking at the Internet Retailer Conference & Exhibition, June 15-18 in Boston, in an m-commerce workshop session titled 1-click checkout: The key to m-commerce success.
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