Buoyed by its strongest Valentine’s Day performance ever, Proflowers Inc. reported the most profitable quarter in its five-year history, posting net income that jumped 120% from a year ago to $2.4 million, on revenues that rose 15% to $28.8 million for its third fiscal quarter ended March 31.
Repeat customers placed 43% of the quarter’s orders, while revenue per order rose 6% to $50. Proflowers acquired more than 178,000 new customers during the quarter, an increase of 16% from last year. A continuing emphasis on streamlining business processes and operations helped net a gross profit margin of 45%, up from the 43% achieved last year during the same quarter, the company says. Virtually all orders at Proflowers–-90%--come in over the Internet, which reduces the company’s overhead and also reduces the cost to the customer, notes CEO Bill Strauss.
“Since launching our business five years ago, we’ve established a strong foothold competing against more established companies,” says Strauss. “We’ll continue to gain ground by relying on our core business–-offering fresh flowers at a lower price.”
Proflowers uses a direct-from-the-grower business model and has developed a supply chain network of grower partners to drop ship large quantities of fresh flowers at farm-direct prices. The company ships to 30 countries worldwide.
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