August 29, 2013, 11:59 AM

Sales decline for 1-800-Flowers in Q4, but rise 4% for the year

The flowers and gift e-retailer reports growth in gourmet food and gift basket sales.

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CEO Jim McCann Inc. generated $735.5 million in sales during its 2013 fiscal year, which ended June 30.

That’s up 4.0% from $707.5 million for 2012. Fourth quarter sales declined 2.4% to $173.0 million from $177.3 million. The flowers and gift e-retailer attributes the year-over-year decline to the Easter holiday taking place during the third quarter in 2013 but in the fourth quarter in 2012. When adjusted for that shift, 1-800-Flowers says Q4 2013 sales increased approximately 1.4%.

The e-retailer’s gourmet food and gift basket business grew the most in 2013, generating sales of $243.2 million, up 6.7% from $228.0 in fiscal 2012. The e-retailer says its Cheryl’s and The Popcorn Factory brands performed well, and there was renewed growth in wholesale gift basket sales. The e-retailer says it decided during the fourth quarter that it will divest its unit to focus on growing the gourmet food and gift basket business.

The retailer also notes that it paid off $18 million in debt during the fourth quarter, closing its fiscal year with zero debt on its books. It also established a new credit line during the quarter. “Combined with our growing cash flows, this provides us with significant flexibility to grow our business in fiscal 2014 and over the long term,” says Jim McCann, CEO of 1-800-Flowers.

For the quarter ended June 30,, No. 58 in the 2013 Internet Retailer Top 500, reported:

  • E-commerce sales $139.5 million, up 0.3% from $139.1 million in Q4 of fiscal 2012.
  • Total sales of $173.0 million, down 2.4% from $177.3 million in Q4 of fiscal 2012.
  • Consumer floral sales of $125.9 million, a 1.5% increase from $124.0 million in Q4 of fiscal 2012.
  • Gourmet food and gift baskets sales of $26.7 million in Q4 of fiscal 2012, down 15.8% from $31.7 million a year ago.
  • Net loss of $1.7 million compared with a net income of $1.8 million in the same quarter last year.

E-commerce accounted for 80.6% of total sales compared with 78.5% in the fourth quarter of fiscal 2012. says 1.6 million consumers placed orders with it during the quarter, including 650,000 consumers new to the e-retailer. It says existing customers placed 60.2% of orders.

For the 2013 fiscal year ended June 30, 1-800-Flowers reported:

  • E-commerce sales of $538.5 million, up 4.5% from $515.2 million in fiscal 2012.
  • Total sales of $735.5 million, up 4.0% from $707.5 million in fiscal 2012.
  • Net income of $12.3 million, down 30.1% from $17.6 million in fiscal 2012.

E-commerce accounted for 73.2% of total sales, up from 72.8% for fiscal 2012. The e-retailer reports that approximately 4.9 million consumers placed online orders with it in fiscal 2013, and 2.3 million of those were new customers. It says existing customers placed 52.3% of orders.


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