Fiscal Q1 web and telephone sales total $109.3 million at 1-800-Flowers.com

Online and telephone sales at 1-800-Flowers.com totaled $109.3 million for the 2007 fiscal year first quarter, ended Oct. 1, up 8.5% from $100.7 million a year earlier. The increase in online and telephone sales helped boost total Q1 revenues to a record $137.1 million, a 21.6% increase from $112.8 million in the year-ago period.

The strong revenue growth for the quarter was aided by the company’s May 2006 acquisition of Fannie May Confection Brands Inc., the company said. Excluding the acquisition of Fannie May, organic growth was approximately 10% from a year earlier.

However, despite the increase in revenues, the company reported a net loss of $7.4 million for the quarter, compared with a $6.6 million net loss a year earlier. Financing and intangible amortization costs associated with the Fannie May acquisition offset much of the revenue gain, the company says.

“We made significant progress during the first quarter toward our stated goals of solid revenue growth and improving our operating leverage to enhance full-year bottom-line performance,” says Jim McCann, CEO. “Our revenue growth of approximately 22%, or more than $24 million, was aided by our most recent acquisitions, particularly Fannie May Confections brands in our fast growing food, wine and gift basket category. Importantly, we achieved this growth in a period that is our lowest in terms of revenue.”

McCann says he expects continued revenue growth across all businesses during the fiscal second quarter, which includes the holiday period. The company also expects to improve higher gross profit margins through a combination of sourcing, process improvements and focused merchandising programs, he says.

During the first fiscal quarter, 1-800-Flowers, No. 35 in the Internet Retailer Top 500 Guide to Retail Web Sites, attracted 548,000 new customers, 67% of whom came through online channels. 59.3% of the more than 1.3 million customers who placed orders during the period were repeat customers.