It was a tough first quarter for fiscal 2010 for 1-800-Flowers.com Inc.
For the first quarter of fiscal 2010 ended Sept. 27, 1-800-Flowers, No. 31 in the Internet Retailer Top 500 Guide reported:
- A decline in e-commerce revenue of 14.8% to $74.8 million from $87.8 million.
- Total revenue decreased 20% to $108.3 million from $135.4 million.
- E-commerce accounted for 69% of total sales compared with 65% in the prior year.
- The net loss was $7.3 million, up from $5.3 million in the previous year.
- Revenue for the consumer floral business unit dropped 16.2% to $70 million from $83.5 million.
- Sales for the gourmet food and gifts business unit declined 32.9% to $24.7 million from $36.8 million
- Revenue from the home and children’s gift segment, a discontinued operation that 1800Flowers.com has been trying to sell, declined 23% to $17.4 million from $22.6 million.
“Revenue in our fiscal 2010 first quarter reflects a shift in the timing of wholesale order shipments as well as a difficult comparison to prior year since we did not see the effects of last year's dramatic economic decline until late in our fiscal second quarter,” says 1-800-Flowers.com CEO Jim McCann. “Despite this, during the quarter we continued to execute on our programs to reduce operating expenses, which declined almost $5 million.”
In the first quarter of fiscal 2010, 1-800-Flowers.com attracted 392,000 new customers. A total of 74%, or 289,000, of those customers came through an online channel, the company says. “We continued to roll out our value-priced merchandising strategy, which will enable us to reduce promotional pricing and thereby help drive improved gross profit margin in the current fiscal second quarter and for the remainder of fiscal 2010,” says McCann. “We also anticipate continued reductions in operating expenses in the current fiscal second quarter, with improvements in revenue comparisons as we move into the second half of our fiscal year.”
While it didn’t release specific numbers, 1-800-Flowers.com says total revenue for fiscal 2010 is expected to be flat or decline by about 5%. The retailer didn’t provide guidance for the second quarter.
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