1-800-Flowers.com reports net revenue up more than 4% for 3Q
Stephen Williams, left and Walter Linares move Valentine's Day arrangements to a truck at the 1-800-flowers.com store in Carle Place. Credit: David Handschuh
1-800-Flowers.com Inc. on Tuesday reported that strong sales in its 1-800-Baskets and Harry & David brands helped push net revenue up 4.1 percent in the fiscal third quarter.
The Carle Place-based online florist and gift retailer said its net loss of $8.2 million for the quarter was down slightly from a $8.5 million loss for the same quarter in the previous year.
Shares of 1-800-Flowers closed up almost 10 percent at $21.29. Its shares are up nearly 80 percent from a year ago.
The company reported net revenue of $248 million for the quarter ended March 31, compared to $238 million in the previous year's third quarter.
"During the fiscal third quarter we continued to drive strong revenue growth despite the shift of the Easter holiday into our fiscal fourth quarter compared with last year, when the holiday fell in our fiscal third quarter," said Chris McCann, CEO of 1-800-Flowers.com.
The 1-800-Flowers.com brand achieved growth of nearly 7 percent, driven by a strong Valentine's Day holiday period, McCann said.
"The company's investments in its consumer floral business to gain market share appear to be paying off," said Michael Kupinski, an analyst at Boca Raton, Florida-based investment banking firm Nobel Capital Markets, who has followed the company for about a decade.
"They beat my expectations, in spite of the adjustment for an Easter shift ... which is a pleasant surprise."
Kupinski said McCann seemed confident about the company's near-term outlook.
Revenue growth for 1-800-Flowers is now expected to be at the high end of the company's previous range of 7 to 8 percent.
The company's brands also include Cheryl's Cookies, The Popcorn Factory, and Simply Chocolate.
CORRECTION
A previous version of this story misstated the percentage increase in net revenue for the company's third quarter.
