1-800-Flowers.com Inc. Monday reported that its revenue more than doubled in the second quarter, driven by its acquisition last year of Oregon-based gift basket retailer Harry & David.
Net income at the online florist and gift company, based in Carle Place, increased 162 percent to $45.8 million, compared with $17.5 million a year earlier.
1-800-Flowers.com said its revenue from continuing operations grew 100.6 percent from $266.3 million a year earlier to $534.3 million for the fiscal 2015 second quarter ended Dec. 28. The company acquired Harry & David for $142.5 million on Sept. 30, 2014.
Shares of 1-800-Flowers rose $1.15, or 14.58 percent, to $9.04 Monday on the Nasdaq Market.
1-800-Flowers chief executive Jim McCann said the strong year-over-year results reflect "contributions from our Harry & David brand, which we acquired at the start of the period."
Revenue at the company's consumer floral segment increased 2.5 percent from a year earlier to $99.6 million. Revenue at the gourmet goods and gift baskets segment rose 177.1 percent to $414.7 million, reflecting contributions from Harry & David.
Overall revenue grew despite the impact from the Thanksgiving Day fire at its Fannie May warehouse and distribution center in Maple Heights, Ohio, which severely damaged the facility. Supplies of Fannie May and Harry London chocolate were limited during the holiday season, reducing revenue for the quarter by $13.8 million. The company said its insurance policies covered the losses.
McCann said, "Importantly, we also achieved top-line growth of nearly 5 percent across all three of our business segments . . . when adjusted for the impact of the Thanksgiving Day fire."
The firm reaffirmed it expects total net revenue from continuing operations will exceed $1.1 billion for the fiscal year.