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1-800-Flowers.com posted e-commerce sales, which include web and call center orders, of $107.7 million in Q1, down 5.9% from $114.5 million in Q1 of the prior year. Total revenue, led by higher sales at BloomNet and DesignPac Gifts, rose by 8.3%.
Total sales bloomed slightly, but e-commerce sales dropped for 1-800-Flowers.com Inc. in the first quarter of the 2009 fiscal year.
In the quarter ended Sept. 28, 1-800-Flowers.com, No. 36 in the Internet Retailer Top 500 Guide, posted e-commerce sales, which include web and call center orders, of $107.7 million, a decrease of 5.9% from $114.5 million in Q1 of the prior year.
Overall 1-800-Flowers.com posted net income of $5.3 million on revenue of $158 million vs. a net loss of $5.8 million on sales of $145.8 million in the first quarter of fiscal 2008. “Our solid revenue growth during the quarter was driven by contributions from DesignPac Gifts, which we acquired in our fiscal 2008 fourth quarter, combined with accelerated growth in our BloomNet Wire Service business,” says 1-800-Flowers.com CEO Jim McCann. “BloomNet’s strong growth included continued market share gains as well as contributions from the acquisition we made in July. These strong results illustrate our strategy to grow revenues profitably through a combination of organic initiatives, business development and strategic acquisitions.”
During the first quarter, 1-800-Flowers.com attracted 461,000 new customers, of which 75%, or 344,000, came through an online channel. Approximately 1.3 million customers placed orders during the quarter, of which 64% were repeat customers, the company says.
E-commerce sales were down primarily as a result of softer sales in the consumer floral business, 1-800-Flowers’ biggest operating unit. First quarter consumer floral sales were $83.5 million compared with $87.6 million in the prior year period, a dip of 4.7%.
Vibhav Prasad, senior director of web marketing and merchandising at 1-800-Flowers.com, spoke in June at the Internet Retailer Conference & Exhibition and his audio-visual presentation at IRCE 2008 is available on CD-ROM.