1-800-Flowers revenue down, income up

1-800-Flowers.com Inc., a Carle Place-based online florist and gift retailer, on Wednesday reported mixed results for its fiscal second quarter because of operational issues at a cookie plant.

Revenue fell 5.1 percent from the year-earlier quarter to $526.1 million. Net income rose 12.3 percent to $70.7 million in the quarter ended Dec. 31.

CEO Chris McCann said in a statement that the company experienced growth in its 1-800-Baskets.com consumer and wholesale businesses and in its consumer floral business, but said “these positive trends were offset by operational issues in our Cheryl’s Cookies business in the final week of the holiday season.” The issues were related to a new manufacturing and warehouse management system and have since been resolved, he said.

“In terms of revenues, while total growth was below our expectations, we were pleased to see continued acceleration of the Harry & David brand, which grew e-commerce revenues nearly 6 percent during the quarter,” McCann added.

Earnings per share rose to $1.06, from 93 cents a year earlier.

The company’s stock closed at $10.42, down 10 percent, or $1.18, in Nasdaq trading Wednesday.