1-800-Flowers.com Inc. Thursday reported that net income rose more than 30 percent in the second quarter, driven by its 2014 acquisition of Oregon-based gift-basket retailer Harry & David and by its wholesale gift baskets segment.
The Carle Place-based online florist and gift company reported net income of $61.5 million in the second quarter ended Dec. 27, an increase of 34.4 percent compared with the same period a year earlier.
The company’s revenue for the second quarter grew 2.6 percent to $548.4 million, compared with a year earlier. The revenue growth was driven primarily by the company’s gourmet foods and gift baskets segment, which increased 4.7 percent, while its consumer floral and BloomNet Wire Service were down, 4.8 percent and 2.2 percent, respectively.
“During the fiscal second quarter, we achieved a double-digit increase in our bottom-line results through our continued rigorous focus on marketing, merchandising and operating costs across the enterprise,” 1-800-Flowers chief executive Jim McCann said in a statement. “We are pleased with these results, particularly in light of a challenging environment characterized by lower retail traffic, heightened levels of promotions and uneven consumer demand.”
1-800-Flowers lowered its forecast for fiscal 2016 from an increase in revenue of 5 percent to 7 percent, to an expected 4 percent to 5 percent growth.
Shares of 1-800-Flowers fell 66 cents, or 9.4 percent, to $6.33 on the Nasdaq Stock Market Thursday