Online sales continued to grow at 1-800-Flowers.com last quarter despite the lack of any major gift-giving holidays during that time period. Online revenues for the direct-marketer florist grew 8.5% to $53.1 million during the fiscal first quarter of 2005, which ended Sept. 26, compared to the same quarter a year earlier.
Additionally, the firm continued to move customers from its telephone sales channels to its online sales operations. Online sales represented 54.4% of total revenue compared to 51.4% in the prior year period. Telephone-based revenues for the quarter of $37.6 million declined nearly 7% from the year earlier, reflecting the continued migration of customers to the Internet, the company says.
Total revenue during the quarter reached $97.5 million, up 2.5% compared to the revenue in the prior year period.
The online channel played an important role in attracting new customers for the company. 1-800-Flowers attracted 460,000 new customers during the quarter, 62% of whom came through the online channels. 1-800-Flowers also managed to build on its existing customer base as 60.5% of the 1.2 million customers who placed orders during the quarter were repeat customers, up fro 58.3% during the first quarter of fiscal 2004.
Much of the growth in online sales was attributed to changes in the company’s marketing and merchandising programs as well as investments in the business gift service division, where the company expanded its sales team and increased its corporate account base. Enhancements to the web site during the quarter included such new features as Fresh From Our Growers, whereby flowers are shipped overnight fresh from growers; professionally designed floral gifts from the company’s master florists and the introduction of unconventional floral artistry of Jane Carroll, which combines elements of art, sculpture and premium flowers for unique gifts.
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