Geeknet terminates a purchase agreement with Hot Topic and accepts a $20 per share bid by GameStop.
1-800-Flowers.com achieved net income of $226,000 in its FY fourth quarter on record revenue of $132.3 million. The company acquired 830,000 new customers during the quarter at a cost of $16.88 each.
1-800-Flowers.com achieved profitability in its fourth quarter, which ended July 1. The company earned $226,000 on record revenues of $132.3 million. Adjusted for a non-recurring charge related to the write down of an investment made in fiscal 2000, the company earned $1.2 million.
Combined online and telephonic revenues increased 9.1% to $124.3 million compared with $113.9 million in the prior year period.
Online revenues increased 33% to $62.7 million, representing 47.4% of total net revenues compared with $47.1 million, or 38.7%, in the same period last year. Telephone orders for the quarter declined 7.8% to $61.6 million compared with $66.8 million in the fourth quarter of fiscal 2000 as customers continued to migrate to the web.
The company attracted 830,000 new customers during the fourth quarter, including 460,000 new online customers. The cost to acquire a new customer declined to $16.88 during fiscal 2001 compared with $23.34 in fiscal 2000. 1-800-Flowers.com attributed the decline to more effective marketing.
During the fourth quarter, 2 million customers placed orders, 46.7% were repeat customers, up from 44% in the fourth quarter of fiscal 2000. Approximately 290,000 customers placed multiple orders during the quarter, many using both online and telephone access.
The company also reported that 36% of combined online and telephone revenues came from non-floral gift products. These products typically provide higher gross margins.
"We are very pleased with our fourth quarter and fiscal 2001 full year results and, in particular, our return to profitability,” said Jim McCann, chairman and CEO. “Despite what continues to be a very challenging economy for retail companies, during our fourth quarter we were able to achieve a solid rate of revenue growth. During the period, we reduced all of our operating expenses not only as a percentage of sales, but also in absolute dollars compared with the fourth quarter of fiscal 2000.”
Full-year fiscal 2001 revenues increased 16.5% to $442 million compared with $380 million in fiscal 2000. The increase amounts to 20% when adjusted for the sale of the company`s FloralWorks wholesale business in January 2000 and one additional week of sales included in the fiscal 2000 fourth quarter.