FTD Group Inc. is fast approaching the day when the Internet will account for nearly all of its consumer business.
In its recently released 2005 fiscal year results, FTD, No. 44 in the Internet Retailer Top 400 Guide to Retail Web Sites, notes that the Internet accounted for 87.2% of all orders in its consumer business unit, up from 83.6% of all consumer orders in 2004. “Consumers’ continued preference for the Internet, along with additional marketing programs and the success of our new product offerings drove growth in our consumer business during the year,” says FTD president and CEO Michael J. Soenen.
For the latest fiscal year, FTD reported consumer business revenues of $247.1 million, compared to combined revenues of $216.8 million in 2004, a 14% increase. Operating income for FTD’s consumer business was $14.4 million for fiscal year 2005, up from $10.9 million for the prior year.
For the fourth quarter of 2005, the percentage of consumer Internet orders increased to 89.3% from 86.5% in the fourth quarter of fiscal year 2004. Consumer orders during the fourth quarter totaled 1.3 million, up slightly from approximately 1.2 million orders in the same quarter of fiscal year 2004. Average order value also increased to $58.78 in the fourth quarter of 2005 from $57.74 in the prior year’s quarter.
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