1-800-Flowers Posts Double-Digit Q2 Growth

Jan 25, 2007 1:39 AM  By

The quarter ended Dec. 31 turned out to be a blockbuster for multichannel gifts marketer 1-800-Flowers.com. The Carle Place, NY-based merchant reaped sales of $329.9 million for its fiscal second quarter, up nearly 19% from $277.8 million for the previous second quarter. What’s more, 1-800-Flowers.com saw its net income soar 64%, to $16.9 million from $10.3 million the previous second quarter.

The company, whose food titles include Popcorn Factory and Cheryl & Co., attributed the revenue increase to double-digit growth in the consumer floral, BloomNet Wire Service, and gourmet and gift baskets categories. Company officials pointed to the May 2006 acquisition of Fannie May Confections Brands as a key growth driver as well. The acquisition included 52 Fannie May stores in the Chicago area and a 200,000-sq.-ft. manufacturing facility in North Canton, OH. The revenue growth was achieved despite an 8% revenue decline in the company’s home and children’s gifts category, which includes the Plow & Hearth and HearthSong catalogs.

Looking ahead, the company projects total revenue growth for fiscal 2007 to range between 17% and 20%.