Harry and David Holdings Ends Year Just Shy of $600 Million

Sep 21, 2006 1:52 AM  By

For the fiscal year ended June 24, food and horticulture merchant Harry and David Holdings posted revenue of $598.2 million, up nearly 6% from $566.3 million for fiscal 2005. The net loss more than doubled, though, to $9.7 million from $4.3 million, due in part to higher delivery expenses and inventory write-downs for its Jackson & Perkins gardening brand.

Direct marketing sales for the Harry and David food gifts brand rose nearly 6% for the year, to $369.8 million, primarily due to a 6.5% bump in catalog circulation. Harry and David store sales rose less than 2%, to $132.1 million, but the company ended the year with six fewer stores than it had operated in 2005. Same-store sales actually climbed more than 8%. Sales in the “other” category, which includes wholesale, doubled to $22.4 million.

Sales at Jackson & Perkins fell more than 2% for the year, to $73.8 million. The company blamed the decline primarily on weaker demand for roses among the company’s reseller customers and on the shift to circulation cuts but an increase in catalog page counts.

“In fiscal 2007, we intend to focus on increasing brand awareness to drive sales in all of our channels, reducing product markdowns and discounts, and expanding consumer reach, particularly in our wholesale channels,” president/CEO Bill Williams said in a statement. “We also are continuing to improve the efficiency of our production capacity.”