FTD.com has another quarter of strong growth

Sales at Downers Grove, IL-based FTD.com grew 20% to $21.9 million in FTD’s first quarter 2002, which ended Sept. 30, from $18.2 million a year ago.

First quarter net income for fiscal 2002, excluding a $2.6 million one-time gain, was $1.7 million vs. net income of $253,000 in the same quarter a year ago. The one-time gain related to the settlement of a claim against the developer of an unlaunched version of the company`s web site. This is FTD’s fifth consecutive profitable quarter.

Orders in the quarter reached 320,000, with an average order value of $61.18, compared to 275,000 orders in the same quarter last year and an average order value of $59.04. Internet orders accounted for 88% of the order mix for the first quarter of fiscal 2002 compared to 84% in the prior fiscal year quarter. This continued shift to Internet orders was driven by marketing programs aimed at Internet shoppers and customers` preference for viewing the floral arrangements and specialty gifts they want to purchase online, the company says.

As have other flower web sites, FTD is broadening its product mix by offering specialty gifts. Gift orders increased 66% for the first quarter vs. last year and now account for 9.7% of FTD orders vs. 6.8% a year ago.

FTD also reported that it reduced customer acquisition costs 44% to $9.72 per customer from $17.22 a year ago. FTD.com maintains 3.6 million customer accounts, a 41% increase from 2.6 million a year ago and a 5% increase from 3.4 million at the end of June.