1-800-Flowers.com adds fish to gift, snack menu
The acquisition of Pacific Northwest-based Vital Choice is part of 1-800-Flowers.com's positioning in the " 'better-for-you' business category," its CEO said Thursday. Credit: Vital Choice
1-800-Flowers.com Inc. has added seafood to its gift and snack lineup with the acquisition of Pacific Northwest-based Vital Choice.
Terms of the deal announced Wednesday for the provider of wild-caught fish, shellfish and organic beef were not disclosed.
CEO Chris McCann said of his company's acquisition: "It's a brand we think we can grow. Credit: Raychel Brightman
On Thursday, shares of 1-800-Flowers.com jumped after the company's first quarter earnings announcement.
Closely held Vital Choice, based in Bellingham, Washington, was founded in 2001. The company will operate as a wholly owned subsidiary of 1-800-Flowers.com.
In a conference call Thursday, 1-800-Flowers.com chief executive Chris McCann said the acquisition illustrates the company's focus on the " 'better-for-you' business category."
"It's more than just a product expansion for us," he said. "It's a brand we think we can grow."
Steve Lightman, group president of gourmet foods and gift baskets at 1-800-Flowers.com, said the acquisition seeks to tap demand by younger consumers for food "that is healthy, natural and convenient."
The Jericho e-commerce company offers a broad menu of floral, gift and snack products from brands including 1-800-Flowers.com, Cheryl's Cookies, Harry & David, Shari's Berries, Moose Munch and The Popcorn Factory.
Vital Choice will be integrated into the company's website, joining steak brand Stock Yards in offering main course options.
Before the stock market open on Thursday, 1-800-Flowers.com reported a net loss of $13.2 million, or 20 cents per share, on a 9% revenue increase to $309.4 million in the first quarter.
That compared to a net loss of $9.8 million, or 15 cents per share, on revenue of $283.8 million in the 2020 quarter.
Shares of 1-800-Flowers.com rose 3.2% to close Thursday at $29.44.
McCann noted that the 9% revenue increase came on top of 51.5% revenue growth in the previous year's first quarter. The 2020 quarter's increase came amid a surge in e-commerce demand fueled by the COVID-19 pandemic.
The company also reaffirmed its guidance for fiscal 2022, including revenue growth of 10% to 12%.
That forecast came despite what the company sees as a challenging environment with a tight labor market and rising wage rates as well as higher commodity costs and shipping rates.
For fiscal 2021 ended June 27, 1-800-Flowers.com posted record revenue of $2.12 billion versus $1.49 billion in the previous year.
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Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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