1-800-Flowers` online sales, up 14%, help drive record Q3 revenue
Driven in part by a 14% increase in online revenues, 1-800-Flowers.com reported net income rose 617% to $1.2 million on record revenues that increased 7.5% to $124.1 million for its fiscal third quarter ended March 30. Online revenues at $64.6 million were up 13.6% over last year’s third quarter. Telephone order revenues increased 3.1% to $52.3 million; together, combined online and telephone revenue rose 8.6% to $116.9 million.
During the quarter, the company gained some 680,000 new customers, 60% of whom came in online. Of the approximately 1.5 million customers who placed orders during the quarter, 55.1% were repeat customers, reflecting the company’s increased emphasis on deepening relationships with existing customers, the company says.
Helping to drive results for the quarter were increased demand for the company’s expanded offering of non-floral, higher-margin gifts; as well as increased operating efficiencies and continuing improvements in customer service. Some 38.1% of combined telephone and online revenues came from non-floral gifts, compared with 34.3% in last year’s third quarter.
“Despite a number of factors including the retail economy, we achieved solid growth in our core business including an almost 14% increase in our online revenue,” says CEO Jim McCann. Looking forward to fiscal 2004, McCann says the company is "cautiously optimistic” and positioned to accelerate revenue growth and operating results as the economy improves and consumer demand increases.
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