1-800-Flowers.com says second quarter results will be record-breaking

1-800-Flowers.com says it expects to record its highest-ever revenues for its second quarter ended Dec. 29, which includes the holiday shopping season, with online sales playing an increasingly key role. When final numbers for the quarter are released Jan. 22, the company says it expects to report total revenue of $197 million, up 22% from $162 million in the year-ago quarter.

1-800-Flowers says it expects its gross profit margin to top 45%, with EBIDTA at an expected $14 million for the quarter, up 400% over a year ago, driven by sales of higher-margin non-floral gifts and a continuing focus on managing operating expenses. “We continue to leverage our well-established operating infrastructure to enhance our bottom-line results,” says CEO Jim McCann.

The company expects to report online sales of approximately $75 million for the quarter, up 25% from last year, while telephone sales are expected to come in at $114 million, a gain of 22% from last year. McCann says that while total revenues were below projections for the quarter, the company was nevertheless able to post the revenue increase of more than 20% over last year in part by avoiding aggressive price promotions that drove sales for much of online retail during the quarter.

Despite the continued likelihood of what the company terms an “unsettled” economy that could dampen consumer spending, 1-800-Flowers anticipates revenue growth of 7% to 9% over last year in the second half of its fiscal year.